BOP Practice Problem Set 2 SOL

BOP Practice Problem Set 2 SOL - 3. $45 million sales by...

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BOP Practice Problems Set #2: Solutions Credit Debit Goods / Merchandise 10(55) 4(65) Service 3(45), 9(15) Net Investments 5(10) Unilateral Transfers 2(25) Capital Account 6(120) 1(35), 8(60) Official Reserve 7(50) 2. Based on the transaction amounts, please calculate the following Balance of Payment accounts: Balance of Trade [55 + 45 + 15] - [65] = +50 Current Account Balance [55 + 45 + 15] - [65 + 10 + 25] = +15 Capital Account Balance [120] - [35 + 60] = +25 List of transactions 1. Purchase of $35 million in Japanese bonds by Vangaurd (USA). 2. A $25 million US aid to Bosnia
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Unformatted text preview: 3. $45 million sales by All State Insurance in France 4. Purchase by HP of components valued at $65 million from Hyndai, in Korea. 5. Payment of $10 million in dividends by GE to its investors in Frankfurt 6. A $120 million stock issue in Frankfurt by GE 7. Purchase of $50 million French Francs by the US Federal Reserve 8. Purchase of $60 million in Japanese Govt Bonds by the US Federal Reserve 9. Foreign tourists spending $15 million in New Orleans 10. Sale of Star Wars DVD, valued at $55 million, in China...
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