Describe how each of the following transactions affects the U.S.

Describe how each of the following transactions affects the U.S. Bal Show more Balance of Payments Accounting: Describe how each of the following transactions affects the U.S. Balance of Payments. (Recall that each transaction gives rise to two entries in the Balance-of-Payments Accounts.) (a) An American university buys several park benches from Spain and pays with a $120000 check. (b) Floyd Townsend of Tampa Florida buys 5000.00 dollars worth of British Airlines stock from Citibank New York paying with U.S. dollars. (c) A French consumer imports American blue jeans and pays with a check drawn on a U.S. bank in New York. (d) An American company sells a subsidiary in the United States and with the proceeds buys a French company. (e) A group of American friends travels to Costa Rica and rents a vacation home for $2500. They pay with a U.S. credit card. (f) The United States sends medicine blankets tents and nonperishable food worth 400 million dollars to victims of an earthquake in a foreign country. (g) A billionaire from Russia enters the United States on an immigrant visa (that is upon entering the United States she becomes a permanent resident of the United States.) Her wealth in Russia is estimated to be about 2 billion U.S. dollars. (h) The United States forgives debt of $500000 to Nicaragua Show less

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