1. Construct the following U.S. Balance of Payments. Assume that only the following transactions took place...

 

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1. Construct the following U.S. Balance of Payments. Assume that only the following transactions took place during the time period under consideration. (10 points) Credit(+) Debit(-) 1. Current account Goods Services Primary Income Secondary Income 2. Capital Account 3. Financial account Direct investment Portfolio investment Others Financial account Direct investment Portfolio investment Others Changes in Key Balances Trade balance Current Account Balance Balance of Payment Balance 1. Americans bought $9,000 in Japanese cars. 2. Japanese firms increased their checking account balances in American banks by $3,000. 3. An American bought a $1,000 German bond. 4. British citizens bought a $4,000 in American wheat. 5. An American bought a $2,000 home on the French Riviera. 6. An American paid $500 to Air France for a trip to Paris. 7. The U.S. government gave $300 in foreign aid to Egypt. 8. Nissan of Japan bought a factory in California for $5,000. 9. An American bank paid $400 in interest to a French firm. 1. Construct the following U.S. Balance of Payments. Assume that only the following transactions took place during the time period under consideration. (10 points) Credit(+) Debit(-) 1. Current account Goods Services Primary Income Secondary Income 2. Capital Account 3. Financial account Direct investment Portfolio investment Others Financial account Direct investment Portfolio investment Others Changes in Key Balances Trade balance Current Account Balance Balance of Payment Balance 1. Americans bought $9,000 in Japanese cars. 2. Japanese firms increased their checking account balances in American banks by $3,000. 3. An American bought a $1,000 German bond. 4. British citizens bought a $4,000 in American wheat. 5. An American bought a $2,000 home on the French Riviera. 6. An American paid $500 to Air France for a trip to Paris. 7. The U.S. government gave $300 in foreign aid to Egypt. 8. Nissan of Japan bought a factory in California for $5,000. 9. An American bank paid $400 in interest to a French firm.

Answer rating: 100% (QA)

Solution Current Account Goods Credit Debit Americans bough Japanes... View the full answer