For each of the following, identify in which part of the balance-of-payments acc
ID: 2675008 • Letter: F
Question
For each of the following, identify in which part of the balance-of-payments account it appears (current account, capital account, or net change in international reserves) and whether it is a receipt or a payment.a. A British subjects purchase of a share of Johnson & Johnson stock
b. An American's purchase of an airline ticket from Air France
c. The Swiss government's purchase of U.S. Treasury bills
d. A Japanese's purchase of California oranges
e. $50 million of foreign aid to Honduras
f. A loan by an American bank to Mexico
g. An American bank's borrowing of Eurodollars
Please answer all. Thanks.
Explanation / Answer
a. capital account - receipt b. Current account - Payment c. international reserves - receipt d. current account - receipt e. current account - payment f. current account - payment g. capital account - receipts
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