Question: 1 . A U . K . resident buys Facebook shares, paying the equivalent of $ 5 0 0 0 Debit: Long term portfolio /

1. A U.K. resident buys Facebook shares, paying the equivalent of $5000
Debit: Long term portfolio / FDI???
Amount: $5000
Reasoning: Increase in US ownership of a foreign asset
Credit: Long term portfolio
Amount: $5000
Reasoning: Decrease in U.K. ownership of a U.S. asset (outflow of capital from the U.K.)
2. Academy Sports + Outdoors imports $2.5 million worth of sports equipment from Vietnam to the USA.
Debit: Goods
Amount: $2.5M
Reasoning: import of goods from Vietnam
Credit: Short Term Portfolio
Amount: $2.5 million
Reasoning: increase in foreign ownership of USD
3. A Canadian entrepreneur seeking to sell souvenirs at the 2025 Superbowl in New Orleans, pays American Airlines $1099 for a Toronto New Orleans-round-trip ticket.
Debit: Short Term Portfolio
Amount: $1099
Reasoning: Decrease in foreign ownership of a US asset
Credit: Service
Amount $1099
Reasoning: Export of a service
4. The U.S. government gives Ethiopia $488 million worth of food for humanitarian aid.
Debit: gifts/unilateral transfers
Amount: $488 million
Reasoning: gift given to foreign entity
Credit: Short term portfolio / GOODS?
Amount: $488 million
Reasoning: Decrease in U.S. assets (outflow of goods without receiving payment)5. Ford Motor Company (U.S.) pays $2.5 billion to purchase all the common stock of the Jaguar Motor Company (U.K.)
Debit: Foreign Direct Investment
Amount: $2.5 billion
Reasoning: Increase in U.S. ownership of a foreign asset
Credit: Foreign Direct Investment
Amount: $2.5 billion
Reasoning: Decrease in U.K. ownership of a U.S. asset (outflow of capital to acquire a foreign company)
\begin{tabular}{|c|c|c|c|c|c|c|}
\hline \multirow[t]{2}{*}{} & \multicolumn{3}{|c|}{CURRENT ACCOUNT} & \multicolumn{3}{|c|}{CAPITAL ACCOUNT}\\
\hline & & DEBit & CREDIT & & DEBIT & CREDIT \\
\hline \multirow[t]{4}{*}{\begin{tabular}{l}
Accounting students: \\
NOTE \\
Debits outflows Credits Inflows
\end{tabular}} & GOODS & IMPORT & EXPORT & FPI & Increase in & Increase in \\
\hline & SERVICES & IMPORT & EXPORT & \begin{tabular}{l}
STP \\
(one year or less)
\end{tabular} & us ownership & foreign ownership \\
\hline & INVESTMENT INCOME & PAY & RECEIVE & LTP & of a foreign asset or decrease in & of a US asset or decrease in \\
\hline & GIFTS/ UNILATERAL TRANSFERS & GIVE & RECEIVE & FDI & foreign ownership of a US asset & US ownership of a foreign asset \\
\hline \multirow[t]{4}{*}{\[
\begin{array}{l}
\text { SIMPLIFIED }\\
\text { HYPOTHETICAL }\\
\text { CHART }
\end{array}
\]} & \multicolumn{3}{|l|}{OFFICIAL RESERVE ACCOUNT} & \multicolumn{3}{|l|}{ERRORS AND OMISSIONS}\\
\hline & \multicolumn{3}{|l|}{Gold} & \multicolumn{3}{|l|}{}\\
\hline & \multicolumn{3}{|l|}{Convertible currencies} & \multicolumn{3}{|l|}{PLUG FIGURE to make the}\\
\hline & \multicolumn{3}{|l|}{Special Drawing Rights (SDRs)} & \multicolumn{3}{|l|}{current+capital+ official reserve=0}\\
\hline & \multicolumn{3}{|l|}{Reserve positions at the IMF} & & & \\
\hline
\end{tabular}
 1. A U.K. resident buys Facebook shares, paying the equivalent of

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