PS4-1 - Problem Set 4 Due July 22, 2010 Econ S-1530 A...

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Problem Set 4 Econ S-1530 Due July 22, 2010 A Balance of Payments Exercise in Double-Entry Accounting Record the following transactions and prepare the balance of payments of the United States. Record the transactions in the Current Account, Unilateral Account, Long- Term Capital and Short-Term Capital Accounts. Please identify the surpluses and deficits of the sub-accounts, as well as the balance on the consolidated Current Account and the consolidated Capital Account. 1. Poland delivers $26 of Gold to the New York Federal Reserve Bank in return for dollars. 2. Lukoil, a U.S. subsidiary of Gazprom, sells $50 of 30-day U.S. Treasury bills to a Russian bank, payment in U.S. dollars. 3. The Russian bank in the previous questions, Sberbank Rossii, sells $25 of the U.S. Government Securities gained from Lukoil to Merril Lynch, and the other $25 to a U.S. branch of Sberbank Rossii. 4. $50 of BMWs imported to the US, payments made in foreign currencies.
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PS4-1 - Problem Set 4 Due July 22, 2010 Econ S-1530 A...

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