
Show how each of the following would affect the U.S. balance of payments. Include a description of the debit and credit items, and in each case identify which specific account is affected (e.g., imports of goods and services, IM; exports of assets, EXA; and so on.
a) A U.S. citizen buys a newly issued stock share in England, paying for his order with a check, which the British company deposits in its own U.S. bank account in New York.
b) An American buys a Japanese car, paying by writing a check on an account with a New York bank.
d) A French firm sells defense equipment to the British government for 250 million pounds in bank deposits.
Please draw a table like i have shown in the sample image (including the arrows indicate the increase or decrease) and explain a bit (if possible can u elaborate a little bit more because i want to understand)


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- Show how each of the following would affect the U.S. balance of payments. Include a description of the debit and credit items, and in each case identify which specific account is affected (e.g., imports of goods and services, IM; exports of assets, EXA; and so on. a)A U.S. automobile manufacturer imports $200000 in parts from a German firm. It uses U.S. bank account to pay for the parts. b) The bank in Switzerland buys $2 million in U.S. Treasury bonds from an American securities firm. c) A French tourists charges $500 to his Mastercard for a hotel stay in Atlanta Please draw a table like the sample image (including arrows which indicate the increase or decrease) and explain a bit under the table (if possible, please elaborate a bit more because i want to understand). Thank you so much.arrow_forwardWhat conditions have contributed to Interest Rate Parity not holding in the market during the past few years?arrow_forwardIf one U.S. dollar is traded on the foreign exchange market for about 0.89 euros, then one euro can purchase about U.S. dollars. a) 0.75 b) 1.12 c) 1.75 d) 0.89arrow_forward
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