Problem
1. "An increase in foreign-owned balances in US banks is equivalent to a short-term loan to the United States." True or false? Explain.
2. Distinguish between the reserve settlements balance and the current account balance.
3. Explain why both a foreign asset acquired and a foreign liability reduced give rise to a debit entry in a nation's balance of payments.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.