Question

Construct the balance of payment statement by recording the following transactions.
a) A US firm exports $5,000 worth of goods to be paid in six months.
b) A US resident visits London and spends $2,000 on hotel, meals and so on.
c) US government gives a US bank balance of $1,000 to the government of a
developing nation as a part of the US aid programme.
d) A US resident purchases foreign stock for $4,000 and pays for it by increasing
the foreign bank balance in the US.
e) A foreign investor purchases $3,000 of United states treasury bills and pays
by drawing down his bank balances in the United States by an equal amount.​

Answer 1

Construct the balance of payment statement by recording the following transactions.

a) A US firm exports $5,000 worth of goods to be paid in six months.

b) A US resident visits London and spends $2,000 on hotel, meals and so on.

c) US government gives a US bank balance of $1,000 to the government of a

developing nation as a part of the US aid programme.

d) A US resident purchases foreign stock for $4,000 and pays for it by increasing

the foreign bank balance in the US.

e) A foreign investor purchases $3,000 of United states treasury bills and pays

by drawing down his bank balances in the United States by an equal amount.