United states balance of payments


Problem: (Balance of Payments) Explain where in the U.S. balance of payments an entry would be made for each of the following:

1. A Hong Kong financier buys some U.S. corporate stock.

2. A U.S. tourist in Paris buys some perfume to take home.

3. A Japanese company sells machinery to a pineapple company in Hawaii.

4. U.S. farmers make a gift of food to starving children in Ethiopia.

5. The U.S. Treasury sells a bond to a Saudi Arabian prince.

6. A U.S. tourist flies to France on Air France.

7. A U.S. company sells insurance to a foreign firm.

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Accounting Basics: United states balance of payments
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