Reference no: EM131737174

1. Show how the following transactions are entered into the US balance of payments:

a. A US resident imports $500 worth of goods from the UK and promises to pay in three months.

b. The US government gives $100K cash balance in a US bank to a developing nation as part of the US foreign aid program.

c. The US government gives $100K worth of food aid to a developing nation.

d. A US resident purchases a $1000 foreign stock and pays for it by drawing down her bank balances abroad.

e. A US resident receives a dividend of $100 on her foreign stock and deposits it in her bank account abroad.

f. A foreign investor purchases $400 of US Treasury Bills and pays by drawing down his bank balances in the United States.