Question: Indicate whether each of the following items represents a debit or a credit on the U.S. balance of payments: a. A U.S. importer purchases a

Indicate whether each of the following items represents a debit or a credit on the U.S. balance of payments:

a. A U.S. importer purchases a shipload of French wine.

b. A Japanese automobile firm builds an assembly plant in Kentucky.

c. A British manufacturer exports machinery to Taiwan on a U.S. vessel.

d. A U.S. college student spends a year studying in Switzerland.

e. American charities donate food to people in drought-plagued Africa.

f. Japanese investors collect interest income on their holdings of U.S. government securities.

g. A German resident sends money to her relatives in the United States.

h. Lloyds of London sells an insurance policy to a U.S. business firm.

i. A Swiss resident receives dividends on her IBM stock.


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