Question 1 Determine which account of the Balance-of-Payments is affected by each of the following transactions and the impact on the market for foreign exchange. (a) Your older brother who lives in London sends money to pay your tuition. (b) Some of the tuition money your older brother sends is used to buy a laptop from Amazon.com. (c) Carnival Cruise Lines pays for half of the cost of building the new cruise pier in your country. (d) Celine Dion performs at the Jamaica Jazz & Blues Festival. (e) In order to diversify its asset holdings a local asset management firm, buys shares of Ford Motor Company on the New York Stock Exchange. (f) Your country exports agriculture produce to the United States.
Question 1 Determine which account of the Balance-of-Payments is affected by each of the following transactions and the impact on the market for foreign exchange. (a) Your older brother who lives in London sends money to pay your tuition. (b) Some of the tuition money your older brother sends is used to buy a laptop from Amazon.com. (c) Carnival Cruise Lines pays for half of the cost of building the new cruise pier in your country. (d) Celine Dion performs at the Jamaica Jazz & Blues Festival. (e) In order to diversify its asset holdings a local asset management firm, buys shares of Ford Motor Company on the New York Stock Exchange. (f) Your country exports agriculture produce to the United States.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer part d, e and f please
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