d) Mexico receives $10 million in foreign aid from the United States. e) Mexican citizens deposit $5 million in Citibank account in New York. f) Mexico imports $110 million worth of goods. g) Mexican firms borrow $45 million by issuing bonds in the United States. h) S. firms earn (and repatriate) $5 million in profits from operations in Mexico. h) The Mexican Central bank buys $15 million in U.S. Treasury bills.
Identify whether each of the following is a debit or a credit in Mexico’s BOP and indicate where the item would be classified.( Specifically indicate the account and the item as credit or debit)
d) Mexico receives $10 million in foreign aid from the United States.
e) Mexican citizens deposit $5 million in Citibank account in New York.
f) Mexico imports $110 million worth of goods.
g) Mexican firms borrow $45 million by issuing bonds in the United States.
h) S. firms earn (and repatriate) $5 million in profits from operations in Mexico.
h) The Mexican Central bank buys $15 million in U.S. Treasury bills.
Suppose that these are all of the entries in Mexico’s BOP table.
State if Mexico is net lender or borrower vis- a -vis the rest of the world?
Calculate the value of errors and omissions.
Thanks.
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