How an american buys a share of german stock transactions

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Explain how each of the following transactions generates two entries-a credit and a debit-in the American balance of payments accounts, and describe how each entry would be classi?ed:

a. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank.

b. An American buys a share of German stock, paying the seller with a check on an American bank.

c. The Korean government carries out an of?cial foreign exchange intervention in which it uses dollars held in an American bank to buy Korean currency from its citizens.

d. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check.

e. A California winemaker contributes a case of cabernet sauvignon for a London wine tasting.

f. A U.S.-owned factory in Britain uses local earnings to buy additional machinery.

Reference no: EM13868735

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