LEC II - BOP Problems

LEC II - BOP Problems - BOPPROBLEMS ExampleentriesintheU.S...

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BOP PROBLEMS  Example entries in the U.S  Balance of Payments  
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1a. American imports $500  merchandise and agrees to pay  in 3 mo.  Account Category Credit Debit Current     Imports $500 Capital     Short-Term $500 The credit is for increases in short-term  borrowing abroad by Americans.
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1b. Resident pays in 3 mos by  drawing down London bank  balance  Account Category Credit Debit Capital Short-term $500 Capital Short-term $500 The credit is to reflect the decrease in  assets abroad. The debit is for the repayment of the short- term loan
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1b if they happen in same yr?   Account  Category  Credit Debit Current  Merchandise Imports  $500 Capital Short-term    $500   The credit is to reflect the decrease in U.S  assets abroad.
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cheque in U.S bank as aid to  foreign govt.  Account Category Credit Debit Current: 
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LEC II - BOP Problems - BOPPROBLEMS ExampleentriesintheU.S...

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