Question

CEE Balance of Payments - BOP Name Part I - The Theory Directions: For each of the transactions below, record both the "Debit" and "Credit" for each country. You must also decide if the transaction belongs in the "Current Account" or a "Capital Account". To prove that debits equal credits, the balance of payments should equal zero. (a.) Alpha buys a graphing calculator from Omega for $50. [b.) Omega downloads a movie from Alpha for $5. [c.) Alpha immigrants send $100 back to Omega relatives [d.) Alpha corporations pay $20 dividends to Omega stockholders. [e.] The Alpha government sells $75 in bonds to Omega. [f.] Rouge Omega investors buy Alpha junk bonds for $15. [9.) Alpha investors receive interest payments from Omega Government of $10 [h.) Alpha businesses borrow $65 from Omega Banks. Omega Alpha Current Account Current Account Debit Credit Net Debit Credit Net Exports Imports Trade Balance Investment Income Received Investment Income Paid Net Investment Income Transfers from the World Transfers to the World Net Unilateral Transfers Current Account Balance Exports Imports Trade Balance Investment Income Received Investment Income Paid Net Investment Income Transfers from the World Transfers to the World Net Unilateral Transfers Current Account Balance Capital Account Capital Account Capital Inflows Capital Outflows Net Capital Inflow Statistical Discrepancy Balance of Payments Capital Inflows Capital Outflows Net Capital Outflow Statistical Discrepancy Balance of Payments

Answer 1

Balance of payments is zero so there is no difference in exports and imports.

Cet arcount 1 CU Acco Debit dat tabit to N Debat capital Account locket Leat rest! accet met S66 8501 - Capital Account Capital Inflowes sus Capital outflows I methout flows Ecouts S'S 1 6 Picha word $50 Ampoule ISS I Bate Balance Trade halda Anmestruant frame Recen los.75 Hom 4 ew Real Sale Sreboti sot Goud SSL Nethen when 35 Not on ly Telbare Wed 31045T L SO Transfer to the word $100 (575) Changes to the poored 10+65 Net biletul from Net Datos Tech Alb 1805 lowest Ae Barande (S16S S&S Capetal and loves capital outflows S65 "Nevert flou Statistical Discrepancy Balance of payment Statistul piscrepang Balance of Paymenti