Identify whether each of the following is a debit or a credit in the country of Freedonias

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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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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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