Question

Problem 5 1. Which of the following transactions would contribute a) McDonald's makes a barter trade with Russia, providing to a U.S. current account surplus? hamburgers for the Kremlin in exchange for potatoesS from Russian state farms b) The U.S. borrows $100 million from Kuwait to buy $100 c) The U.S. sells Israel $100 million in automatic weapons, d) The U.S. government makes a gift of $100 million to the e) The U.S. government sells $100 million in long term f) American travel agents buy Olympic Games tickets from million of Kuwaiti oil this year. paid for with $100 million in bank deposits people of Rwanda to pay for emergency hospital care bonds to Japan, is paid with bank deposits in Tokyo, and promises to repay the loan in five years a Chinese scalper, paying with dollars (cash) 58

Answer 1

amount surplus will be accounted only when cash inflows constrained with outfolw of value or goods and services or assets.

here only option is with

c)

here one more option may rise to doubt that is e) which is not correct because US get paid as bank deposite in TOKYO not the US hence is not correct.