US BOP
transaction | CA ( US) | FA | Remarks |
(A) Import from Germeny | debit entry import from Germeny payment done | import leads to outflow of money from economy. | |
(B) treasury bond purchased in US | . | Credit entry payment received | foreign investment received by US economy. |
(C) hotel stay charges | credit entry payment received | services given leads to increase in inlfow of money. | |
(D) Payment for building design | Credit entry payment received | chines comany hire the services of new york based firm to design their building in shanghai. | |
(E) debt foregivness | Credit entry | loan would not be repaid would be consider as transfer payment. | |
(F)donate | Debit entry payment made for earthquake victims | part of CA as transaction are done for visible, invisible and unilateral transfer and investment income. | |
(G) gift against gift | no change as both credit and debit entry can be made | unilateral transfer includes gift pension etc again you dont need to pay anythings. |
Can someone please answer? Question 4) Show using credit/debit table) how each of the following would...
Can anyone do a, b, and c?? JUU dived to this conclusion. Question 4) Show using credit/debit table) how each of the following would affect the U.S. Balance of Payments. Include all of the following: - the description of the transaction being recorded, - which specific account is affected and how (for example, CA increase, FA decrease, etc) - the corresponding credit/debit entry. a. A U.S. automobile manufacturer imports $200 000 in parts from a German firm. It uses U.S....
How would each of the following transactions show up on the U.S. balance-of-payments accounts? a. Payment of $50 million in Social Security to U.S. citizens living in Costa Rica. b. Sale overseas of 125,000 Elvis Presley CDs. c. Tuition receipts of $3 billion received by American universities from foreign students d. Payment of $1 million to U.S. consultants A.D. Little by a Mexican company e. Sale of a $100 million Eurobond issue in London by IBM f. Investment of $25...