Consider each of the following events for each identify


Consider each of the following events. For each, identify whether it should be included in the U.S. BOP table; where relevant, determine whether it is a debit or credit entry; and calculate the statistical discrepancy entry for the U.S. BOP table.

a. Ford imports $200 million worth of engines made in its motor plant in Toronto.

b. Boeing sells ten 767's worth $500 million to Swiss Air.

c. Americans earn $15 million in interest payments on U.K. government bonds.

d. Microsoft pays $5 million in dividends to stockholders in Japan.

e. The U.S. government distributes $50 million in foreign aid.

f. GM buys Toyota for $1 billion.

g. British Petroleum buys Exxon for $750 million.

h. While on vacation in France, a Pittsburgh resident has her paycheck direct deposited to her Pittsburgh bank account.

i. The State of Pennsylvania sells $100 million in state government bonds to Lloyds of London.

j. The U.S. government sells $50 million in U.S. Treasury bills to the government of Japan.

k. The U.S. government acquires $10 million in gold from the government of Saudi Arabia.

Solution Preview :

Prepared by a verified Expert
Business Economics: Consider each of the following events for each identify
Reference No:- TGS01245605

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)