Ch 5 BOP Practice Problem Set 3 SOL

Ch 5 BOP Practice Problem Set 3 SOL - C. Tuition receipts...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Solutions: BOP Practice Problem Set #3 1. Please enter the alphabets associated with each transaction listed below in the proper cells in the following table. Credit Debit Goods / Merchandise B (15) J (60) Service C (30), D (8) Investment Income H (10) Unilateral Transfers A (20) Capital Account G (100) F (6), K (25) Official Reserve I (8) E (32) 2. Based on the transaction amounts, please calculate the following BOP accounts: Balance of Trade [15 + 30 + 8] - [60] = - 7 Current Account Balance [15 + 30 + 8] - [60 + 10 + 20] = - 37 Capital Account Balance [100] - [6 + 25] = 69 List of transactions A. Payment of $20 million in Social Security to US citizens living in Costa Rica B. Sale overseas of Elvis Presley CDs valued at $15 million.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: C. Tuition receipts of $30 million received by US universities from foreign students. D. Payment of $8 million consulting fees to Arthur Andersen by a Mexican firm E. Purchase of $ 32 million of British Pounds by the US Federal Reserve F. Purchase of $ 6 million of British government bonds by the US Federal Reserve G. Sale of a $100 million Eurobond issue in London by IBM. H. Payment of $10 million in interest by IBM to its Eurobond investors in London I. Sale of $8 in gold by the US Federal Reserve J. Purchase by TI of memory chips valued at $60 million from Toshiba, in Japan. K. Purchase of $25 million in East European stocks by Fidelity Investments (USA)....
View Full Document

This note was uploaded on 04/15/2011 for the course FINA 5500 taught by Professor Staff during the Spring '08 term at North Texas.

Ask a homework question - tutors are online