I. Country B donates PhP 1.3 billion of funds to country A for rehabilitation. II. A foreign company which has been in country A for over 10 years exports PhP 55.7 million of semiconductor to a private communications company in country B. However, a condition that country B will only pay for the shipment by the time the semiconductors arrive from country A. III. Country B invests in foreign securities issued by country A. 4. Which of the transaction/s above will be included under current accounts? a. The PhP 1.3 billion donation and PhP 55.7 million shipment of semiconductor b. The PhP 55.7 million shipment of semiconductor and the payment to made for it c. Both I and II d. Both a and b e. All of the above 5. Which of the transaction/s above will be included under financial accounts? a. The PhP 1.3 billion donation and PhP 55.7 million shipment of semiconductor b. The payment for the shipment of semiconductor and sale of foreign securities c. Sale of foreign securities only d. All of the above e. None of the above 6. Which of the following statements is true? a. In item I, the PhP 1.3 billion will reflect as a debit or outflow of country A and a credit or inflow of country B. b. In item II, the PhP 55.7 million country is neither a credit nor debit of country A but is a credit or inflow of country B c. In item III, the investment in foreign securities will reflect as a debit or outflow of country B and a credit inflow of country A d. All of the above e. None of the above
I. Country B donates PhP 1.3 billion of funds to country A for rehabilitation. II. A foreign company which has been in country A for over 10 years exports PhP 55.7 million of semiconductor to a private communications company in country B. However, a condition that country B will only pay for the shipment by the time the semiconductors arrive from country A. III. Country B invests in foreign securities issued by country A. 4. Which of the transaction/s above will be included under current accounts? a. The PhP 1.3 billion donation and PhP 55.7 million shipment of semiconductor b. The PhP 55.7 million shipment of semiconductor and the payment to made for it c. Both I and II d. Both a and b e. All of the above 5. Which of the transaction/s above will be included under financial accounts? a. The PhP 1.3 billion donation and PhP 55.7 million shipment of semiconductor b. The payment for the shipment of semiconductor and sale of foreign securities c. Sale of foreign securities only d. All of the above e. None of the above 6. Which of the following statements is true? a. In item I, the PhP 1.3 billion will reflect as a debit or outflow of country A and a credit or inflow of country B. b. In item II, the PhP 55.7 million country is neither a credit nor debit of country A but is a credit or inflow of country B c. In item III, the investment in foreign securities will reflect as a debit or outflow of country B and a credit inflow of country A d. All of the above e. None of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1. Country B donates PhP 1.3 billion of funds to country A for rehabilitation.
II. A foreign company which has been in country A for over 10 years exports PhP 55.7 million of
semiconductor to a private communications company in country B. However, a condition that country B will
only pay for the shipment by the time the semiconductors arrive from country A.
III. Country B invests in foreign securities issued by country A.
4. Which of the transaction/s above will be included under current accounts?
a. The PhP 1.3 billion donation and PhP 55.7 million shipment of semiconductor
b. The PhP 55.7 million shipment of semiconductor and the payment to made for it
c. Both I and II
d. Both a and b
e. All of the above
5. Which of the transaction/s above will be included under financial accounts?
a. The PhP 1.3 billion donation and PhP 55.7 million shipment of semiconductor
b. The payment for the shipment of semiconductor and sale of foreign securities
c. Sale of foreign securities only
d. All of the above
e. None of the above
6. Which of the following statements is true?
a. In item I, the PhP 1.3 billion will reflect as a debit or outflow of country A and a credit or inflow of
country B.
b. In item II, the PhP 55.7 million country is neither a credit nor debit of country A but is a credit or
inflow of country B
c. In item III, the investment in foreign securities will reflect as a debit or outflow of country B and a
credit inflow of country A
d. All of the above
e. None of the above
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