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_forwardExplain to the citizens of your country the situations that surround the balance of payment in an economy.arrow_forward
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