Please enter the number associated with each

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Please enter the number associated with each transaction listed below in the proper cells in the following table. Credit Debit Goods / Merchandise 8 (35) 4 (65) Service 3 (10) Net Investment Income 2 (5) Unilateral Transfers 5 (18) Capital Account 6 (8) 1 (15) Official Reserve 7 (6) 2. Based on the transaction amounts, please calculate the following Balance of Payment accounts: Balance of Trade (35 + 10) - (65) = - $20 million Current Account Balance (35 + 10 + 5) - (65 + 18) = - $ 35 million List of transactions 1. A $15 million bond issue in the US by the Japanese Govt 2. Americans receiving $5 million in coupon payments on Japanese Govt bonds. 3. $10 million casino revenue in Atlantic City from Asian tourists. 4. $65 million wheat purchase by US from Canada 5. $18 million US military assistance to Pakistan 6. Sale of $8 million British Govt Bonds by the US Federal Reserve 7. Purchase of $6 million Euros by the US Federal Reserve 8. Sale of $35 million worth of tennis rackets in Asia by Wilson. Q4. (22 points) Please circle the right words or phrases in the statements listed below: a) If inflation rate in the US is 5% while the Japanese inflation rate is 3%, then: (i) US exports to Japan would: decrease (ii) US imports from Japan would: increase (iii) US trade deficit with Japan would: increase b) If inflation rate in the US is 5% while the British inflation rate is 9%, then: (i) US exports to UK would: increase (ii) US imports from UK would: decrease (iii) US Balance of Trade with UK would: increase
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