Show how each of the following would affect the U.S. balance of payments. Include a description of the debit and credit items, and in each case identify which specific account is affected
- Show how each of the following would affect the U.S. balance of payments. Include a description of the debit and credit items, and in each case identify which specific account is affected (e.g. imports of goods and services, IM; exports of assets, EXA; and so on)
a. A California computer manufacturer purchases a $50 hard disk from a Malaysian company, paying the funds from a bank account in Malaysia.
b. A U.S. tourist to Japan sells his iPod to a local resident for yen worth $100.
c. The U.S. central bank purchases $500 million worth of U.S. Treasury bonds from a British financial firm and sells pound sterling foreign reserves.
d. A U.S. owner of Sony shares receives $10,000 in dividend payments, which are paid into a Tokyo bank.
e. The central bank of China purchases $1 million of export earnings from a firm that has sold $1 million of toys to the U.S., and the centra bank holds these dollars as reserves.
f. The U.S. government forgives a $50 million debt owed by a developing country.
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