Ch 5 BOP Practice Problem Set 3 SOL

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

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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.
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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)....
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