The double-entry principle in the balance of payments How will the following tra

Question

The double-entry principle in the balance of payments How will the following transactions affect the U.S. balance of payments? A Saudi Arabian oil company purchases $1 million worth of U.S. government bonds from a U.S. bank, paying from its account held with the bank. This transaction will appear as a credit in the_____account and as a debit in the____account. A foreign owner of Microsoft (U.S. company) shares receives $8,000 in dividend payments, which are paid into a New York bank. This transaction will appear as a credit in the____account and as a debit in the____account. A U.S. computer manufacturer purchases hard disks from a Korean company, paying the funds from Its bank account in Korea. This transaction will appear as a credit in the____account and as a debit in the____account.

Explanation / Answer

1. capital account of U.S government

2. capital account of Saudi Arabian

3. financial account of New York bank

4. financial account of U.S

5. current account of Korean company

6. current account of U.S

4.

5.

6.

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