Consider the fundamental identity equation of the balance of payments account. The table below shows entries...
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Consider the fundamental identity equation of the balance of payments account. The table below shows entries in CA and FA. CA FA 1.a. Answer the capital account balance. CA: FA: Credit 870 8100 1.b. Home country did the additional transactions below. (a) Home imported wheat (worth 800) from Foreign countries. (b) A Foreign citizen purchased Home government bonds and paid 90. Add these to the table above and answer new CA balance and new FA balance. Do not forget about their counter entries. Debit 1250 7030 Home currency: Home CA: 2. Exchange rate changed. The change increased foreign country's CA. Answer how Home currency changed: Appreciated or Depreciated, and how the change would change Home CA: Increase or Decrease. Consider the fundamental identity equation of the balance of payments account. The table below shows entries in CA and FA. CA FA 1.a. Answer the capital account balance. CA: FA: Credit 870 8100 1.b. Home country did the additional transactions below. (a) Home imported wheat (worth 800) from Foreign countries. (b) A Foreign citizen purchased Home government bonds and paid 90. Add these to the table above and answer new CA balance and new FA balance. Do not forget about their counter entries. Debit 1250 7030 Home currency: Home CA: 2. Exchange rate changed. The change increased foreign country's CA. Answer how Home currency changed: Appreciated or Depreciated, and how the change would change Home CA: Increase or Decrease.
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Answer rating: 100% (QA)
1a The capital account balance can be calculated as follows Capital Account Balance Credit Debit 870 ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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