8. Explain how each of the following transactions will be classified and recorded in the debit...

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8. Explain how each of the following transactions will be classified and recorded in the debit and credit of the Tanzania balance of payments and calculate the following; Balance of Trade; Current Account Balance; Capital Account Balance a. A Japanese Insurance company purchases Tanzania Treasury bonds worth TZS 10,000,000 and pays out of bank account kept in Dar es Salaam. b. Tanzania donates aid to flood victims in Kenya amounting to $20 million. c. Lady Jaydee CDs sold overseas worth $15 million. d. Tuition fees amounting to $30 million received by UDSM from foreign students. e. A South African consulting firm pays fees to UDSM worth $8 million. f. BOT buys British Pounds worth $32 million. g. The Tanzania government buys bonds worth $6 million issued by the U.S. Federal Reserve. h. TCC sells bonds worth $100 million in London. i. TCC pays $10 million in interest to investors in New York. j. BOT sells gold worth $8 million in its reserves. k. Tanzania Data Company buys computers worth $60 million from Apple. 1. Tanzania Investment Company buys stocks worth $25 million in Kenya. 1 8. Explain how each of the following transactions will be classified and recorded in the debit and credit of the Tanzania balance of payments and calculate the following; Balance of Trade; Current Account Balance; Capital Account Balance a. A Japanese Insurance company purchases Tanzania Treasury bonds worth TZS 10,000,000 and pays out of bank account kept in Dar es Salaam. b. Tanzania donates aid to flood victims in Kenya amounting to $20 million. c. Lady Jaydee CDs sold overseas worth $15 million. d. Tuition fees amounting to $30 million received by UDSM from foreign students. e. A South African consulting firm pays fees to UDSM worth $8 million. f. BOT buys British Pounds worth $32 million. g. The Tanzania government buys bonds worth $6 million issued by the U.S. Federal Reserve. h. TCC sells bonds worth $100 million in London. i. TCC pays $10 million in interest to investors in New York. j. BOT sells gold worth $8 million in its reserves. k. Tanzania Data Company buys computers worth $60 million from Apple. 1. Tanzania Investment Company buys stocks worth $25 million in Kenya. 1

Answer rating: 100% (QA)

ANSWER a This transaction will be classified as a Capital Account transaction and will be recorded as a credit of 10 million in the Tanzania Balance of Payments Debit Credit 10 million Balance of Trad... View the full answer