International Finance Transactions
Not what you're looking for?
1. Indicate how each of the following international transactions is entered into the U.S. balance of payments with double-entry bookkeeping:
(a) A U.S. resident imports $500 worth of merchandise from a U.K. resident and agrees to pay in three months.
(b) After the three months, the U.S. resident pays for his imports by drawing down his bank balances in London.
(c) What is the net effect of transactions (a) and (b) on the U.S. balance of payments if they occur during the same year?
2. Indicate how each of the following international transactions is entered into the U.S. balance of payments with double-entry bookkeeping:
(a) The U.S. government gives a $100 cash balance in a U.S. bank to a developing nation as part of the U.S. foreign aid program.
(b) The developing nation uses the $100 bank balance to import $100 worth of food from the United States.
(c) What is the net effect of transactions (a) and (b) on the U.S. balance of payments if they occur during the same year?
Purchase this Solution
Solution Summary
The solution indicates how international transactions are written into the balance of payments.
Solution Preview
1. Indicate how each of the following international transactions is entered into the U.S. balance of payments with double-entry bookkeeping:
(a) A U.S. resident imports $500 worth of merchandise from a U.K. resident and agrees to pay in three months.
a) dr: U.S. Imports (Goods and Services) $500
cr: account payable $500
(b) After the three months, the U.S. resident pays for his imports by drawing down his bank balances in London. ...
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Motivation
This tests some key elements of major motivation theories.