Identify whether each of the following is a debit or a credit in the country of Freedonias
Question:
Identify whether each of the following is a debit or a credit in the country of Freedonia’s BOP and indicate where the item would be classified.
a. Freedonian firms export \($250\) million worth of goods.
b. Freedonian citizen’s purchase \($50\) million worth of tickets on US Airways flights.
c. A Freedonian firm purchases a shoe factory in Mexico for \($30\) million.
d. Freedonia receives \($5\) million in foreign aid from the United States.
e. Freedonian citizens deposit \($15\) million in a Citibank account in New York.
f. Freedonia imports \($220\) million worth of goods.
g. Freedonian firms borrow \($45\) million by issuing bonds in the United States.
h. U.S. firms earn (and repatriate) \($5\) million in profits from operations in Freedonia.
i. The Freedonia central bank buys \($10\) million in U.S. Treasury bills.
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