Calculate e) and f)Thank you. For each of the following transactions, determine which U.S. balance of payments account is credited and which is debited and by howmuch. Assume payments for all transactions are deposited into a U.S. dollar-denominated bank account.Instructions: Enter your answer as a whole number.a. The United States imports $10 million worth of furniture from Sweden.A credit is made to the financial account v for $10 million.A debit is made to the current accountfor $10 million.b. U.S. investors purchase $5 million in stock from companies located in Southeast Asian countries.A credit is made to the financial account v for $5 million.A debit is made to the financial account v for $5 million.c. The United States exports $25 million in wheat to Mexico.A credit is made to the current accountv for $25 million.A debit is made to the financial account v for $25 million.d. Chinese investors purchase $2 miltion in U.S. government bonds.A credit is made to the financial accountfor $2 million.A debit is made to the financial accountfor $2 million.Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.e. What is the net balance of each account?Current account: $millionFinancial account: $|1million< PrevNext >11 of 13 d. Chinese investors purchase $2 million in U.S. government bonds.cesA credit is made to the financial account v for $2 million.A debit is made to the financial account v for $2 million.Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.e. What is the net balance of each account?Current account: $TEmillionFinancial account: $millionCapital account: $millionf. What is the sum of all accounts (current, financial, and capital)?$4million...McGrawHill< Prev11 of 13Next >pe here to searchEndPoPrtScnHomeF10DIIF8F7F6F3F4F2

e) Current account = -$10+ $25 = $15 million (credits are added and debited are minus-ed) Financial…

For each of the following transactions, determine which U.S. balance of payments account is credited and which is debited and by how much. Assume payments for all transactions are deposited into a U.S. dollar-denominated bank account.

For each of the following transactions, determine which U.S. balance of payments account is credited and which is debited and by how much. Assume payments for all transactions are deposited into a U.S. dollar-denominated bank account.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter36: Exchange Rates And Financial Links Between Countries

Section: Chapter Questions

Problem 13E

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Question

Calculate e) and f) Thank you.

For each of the following transactions, determine which U.S. balance of payments account is credited and which is debited and by how
much. Assume payments for all transactions are deposited into a U.S. dollar-denominated bank account.
Instructions: Enter your answer as a whole number.
a. The United States imports $10 million worth of furniture from Sweden.
A credit is made to the financial account v for $
10 million.
A debit is made to the current account
for $
10 million.
b. U.S. investors purchase $5 million in stock from companies located in Southeast Asian countries.
A credit is made to the financial account v for $
5 million.
A debit is made to the financial account v for $
5 million.
c. The United States exports $25 million in wheat to Mexico.
A credit is made to the current account
v for $
25 million.
A debit is made to the financial account v for $
25 million.
d. Chinese investors purchase $2 miltion in U.S. government bonds.
A credit is made to the financial account
for $
2 million.
A debit is made to the financial account
for $
2 million.
Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.
e. What is the net balance of each account?
Current account: $
million
Financial account: $|
1million
< Prev
Next >
11 of 13

d. Chinese investors purchase $2 million in U.S. government bonds.
ces
A credit is made to the financial account v for $
2 million.
A debit is made to the financial account v for $
2 million.
Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.
e. What is the net balance of each account?
Current account: $
TEmillion
Financial account: $
million
Capital account: $
million
f. What is the sum of all accounts (current, financial, and capital)?
$4
million
...
Mc
Graw
Hill
< Prev
11 of 13
Next >
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