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. Transaction Account with Credit Account with Debit Gabrielle, an American tourist, stays at a Japanese hotel and pays $500 for it with her credit card issued by an American firm. Capital A foreign owner of Microsoft (U.S. company) shares receives $8,000 in dividend payments, which are paid into a New York bank. The United States forgives $100 million of debt owed by the government of Mexico. Current Financial Grade It Now Save & Continue Continue without saving
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. Transaction Account with Credit Account with Debit Gabrielle, an American tourist, stays at a Japanese hotel and pays $500 for it with her credit card issued by an American firm. Capital A foreign owner of Microsoft (U.S. company) shares receives $8,000 in dividend payments, which are paid into a New York bank. The United States forgives $100 million of debt owed by the government of Mexico. Current Financial Grade It Now Save & Continue Continue without saving
Chapter29: International Finance
Section: Chapter Questions
Problem 1P
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Transcribed Image Text: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.
Transaction
Account with Credit
Account with Debit
Gabrielle, an American tourist, stays at a Japanese hotel and pays $500 for it with her
credit card issued by an American firm.
Capital
A foreign owner of Microsoft (U.S. company) shares receives $8,000 in dividend
payments, which are paid into a New York bank.
The United States forgives $100 million of debt owed by the government of Mexico.
Current
Financial
Grade It Now
Save & Continue
Continue without saving
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