1. The double-entry principle in the balance-of-payments How will the following transactions affect the U.S. balance-of-payments? For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit. Transaction Miguel, a U.S. resident, buys an HDTV set for $2,500 and sends it to Mexico as a gift to his parents. Brandon, a U.S. resident, pays $5,000 from his checking account held in the United States to buy shares of stock issued by a German company. Xavier, a U.S. resident, receives ¥500,000 in dividend payments on shares that he holds in a Japanese company, which are deposited in his account in a Japanese bank. Account with Credit Account with Debit Current Current Capital Current Capital Financial Financial
1. The double-entry principle in the balance-of-payments How will the following transactions affect the U.S. balance-of-payments? For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit. Transaction Miguel, a U.S. resident, buys an HDTV set for $2,500 and sends it to Mexico as a gift to his parents. Brandon, a U.S. resident, pays $5,000 from his checking account held in the United States to buy shares of stock issued by a German company. Xavier, a U.S. resident, receives ¥500,000 in dividend payments on shares that he holds in a Japanese company, which are deposited in his account in a Japanese bank. Account with Credit Account with Debit Current Current Capital Current Capital Financial Financial
Chapter18: International Finance
Section: Chapter Questions
Problem 1.2P
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Transcribed Image Text:1. The double-entry principle in the balance-of-payments
How will the following transactions affect the U.S. balance-of-payments?
For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit.
Transaction
Miguel, a U.S. resident, buys an HDTV set for $2,500 and sends it to Mexico as a gift to
his parents.
Brandon, a U.S. resident, pays $5,000 from his checking account held in the United States
to buy shares of stock issued by a German company.
Xavier, a U.S. resident, receives ¥500,000 in dividend payments on shares that he holds in
a Japanese company, which are deposited in his account in a Japanese bank.
Account with Credit
Account with Debit
Current
Current
Capital
Current
Capital
Financial
Financial
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