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Q. Specify 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 upward country as part of the United States (US) foreign aid program.
(b)The developing country uses the $100 bank balance to import $100 worth of food from the United States (US).
(c)Explain the net effect of transactions (a) and (b) on the U.S. balance of payments if they occur during the same year?
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