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Consider two fictional economies, one called domestic country and the other the foreign country.

Consider two fictional economies, one called domestic country and the other the foreign country. Given the transactions listed in (a) through (g), construct the trade balance,       current account balance and capital account balance for each country. If necessary, include a statistical discrepancy.


a.    The domestic country purchased $100 in computer parts from the foreign country.

b.    Foreign tourists spent $25 in seeing a Broadway show.

c.    Foreign investors were paid $15 in interest in their holding of domestic bonds.

d.     Domestic residents remitted $25 to their relatives abroad.

e.    Domestic businesses borrowed $65 from foreign banks.

f.     Foreign investors purchased $50 of domestic corporate bonds

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