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    Economics

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    For each of the following, indicate in which U.S. balance-of-payment account it would be recorded (i.e. current or capital/financial) and whether it would be a credit or a debit.

    a. U.S. imports of grapes
    b. Aid paid by the U.S. government to Mexico
    c. U.S. exports of automobiles
    d. Payments received by U.S. residents from foreign investments.
    e. Foreign residents purchase U.S. assets.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:02 pm ad1c9bdddf
    https://brainmass.com/economics/balance-of-payments/economics-137473

    Solution Preview

    a: US import of grapes would reduce the Trade balance which is classified under current account. Thus this will lead to a debit in the current account.
    b: Aid paid ...

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