How will the following transactions affect the U.S. balance-of-payments? For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit. Account with Credit Account with Debit Transaction A Saudi Arabian oil company purchases $1 million worth of U.S. government bonds from a U.S. bank, paying from its account held with the bank. A foreign owner of Microsoft (U.S. company) shares receives $8,000 in dividend payments, which are paid into a New York bank. A U.S. computer manufacturer purchases hard drives from a Korean company, paying the funds from its bank account in Korea. Capital Current Financial
How will the following transactions affect the U.S. balance-of-payments? For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit. Account with Credit Account with Debit Transaction A Saudi Arabian oil company purchases $1 million worth of U.S. government bonds from a U.S. bank, paying from its account held with the bank. A foreign owner of Microsoft (U.S. company) shares receives $8,000 in dividend payments, which are paid into a New York bank. A U.S. computer manufacturer purchases hard drives from a Korean company, paying the funds from its bank account in Korea. Capital Current Financial
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1. The double-entry principle in the balance-of-payments
How will the following transactions affect the U.S. balance-of-payments?
For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit.
Account with Credit Account with Debit
Transaction
A Saudi Arabian oil company purchases $1 million worth of U.S. government bonds from a
U.S. bank, paying from its account held with the bank.
A foreign owner of Microsoft (U.S. company) shares receives $8,000 in dividend
payments, which are paid into a New York bank.
A U.S. computer manufacturer purchases hard drives from a Korean company, paying the
funds from its bank account in Korea.
Capital
Current
Financial](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe625b53c-5037-4912-84cb-7ab9438f2484%2F057dd39d-b2b0-499f-8c00-d89699a49684%2Fj7q4q1i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. The double-entry principle in the balance-of-payments
How will the following transactions affect the U.S. balance-of-payments?
For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit.
Account with Credit Account with Debit
Transaction
A Saudi Arabian oil company purchases $1 million worth of U.S. government bonds from a
U.S. bank, paying from its account held with the bank.
A foreign owner of Microsoft (U.S. company) shares receives $8,000 in dividend
payments, which are paid into a New York bank.
A U.S. computer manufacturer purchases hard drives from a Korean company, paying the
funds from its bank account in Korea.
Capital
Current
Financial
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