Show (using the credit/debit tables) how each of the following would affect the USBalance Of Payment. Your records should include a description of the transaction beingrecorded, which specific account is affected, and the accompanying credit/debit entry.a. An American buys a share of German stock, paying by writing a check on anaccount with a Swiss bank.b. An American buys a share of German stock, paying the seller with a check on anAmerican bank.c. The Korean government carries out an official foreign exchange intervention in whichit uses dollars held in an American bank to buy Korean currency from its citizens.d. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France,paying with a traveler’s check.e. A California winemaker contributes a case of cabernet sauvignon for a Londonwine tasting.f. A U.S.-owned factory in Britain uses local earnings to buy additional machinery.
Show (using the credit/debit tables) how each of the following would affect the US
Balance Of Payment. Your records should include a description of the transaction being
recorded, which specific account is affected, and the accompanying credit/debit entry.
a. An American buys a share of German stock, paying by writing a check on an
account with a Swiss bank.
b. An American buys a share of German stock, paying the seller with a check on an
American bank.
c. The Korean government carries out an official foreign exchange intervention in which
it uses dollars held in an American bank to buy Korean currency from its citizens.
d. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France,
paying with a traveler’s check.
e. A California winemaker contributes a case of cabernet sauvignon for a London
wine tasting.
f. A U.S.-owned factory in Britain uses local earnings to buy additional machinery.
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