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Debits and Credits to the Balance of Payments account

Debits and Credits to the Balance of Payments Account. See attached file for full problem description.

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The balance of payments is a summary statement of the domestic country's payments and debts to foreign countries and the receipts and credits received from foreign countries for a specified period, generally one year. Balance of Payments = Current Account Balance + Capital Account Balance + Official Reserve Account Balance = 0.

If the transaction results in a demand for the foreign currency in the foreign exchange market, then the balance of payments entry for the domestic country is a debit (minus) item. If the transaction results in a demand for the domestic currency, it is considered a credit (plus) item. Imports are considered a ...

Solution Summary

Balance of Payments debit and credit entries credited by different transactions.

$2.19