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1. Consider the U.S. balance of payments. Provide separate t-accounts for each of the following international transactions (assume the value of all transactions is S500). Also show how the individual entries are recorded in the three major accounts of the U.S. balance of payments a. U.S. resident imports a VW car from Germany, pays by check in euros. b. U.S. exports grain to Japan, s paid by check in dollars. c. U.S. imports coffee from Brazil, agrees to pay in dollars three months later d. U.S. tourist spends euros in Paris. e. German firms and banks, because they are accumulating more dollars than they want or than German banks will accept, turn them in to the German Bundesbank (central bank), which agrees to give them euros. U.S. investor buys a Canadian 2-year treasury bond, pays by check in CD U.S. firm builds a factory in Mexico, pays for inputs (land, local labor, etc.) in pesos f. g. h. U.S. government sends foreign aid to Pakit, which Pakistanis hold, in the form i. of dollars China buys nuclear reactors from the U.S. government, pays in yuan Portuguese immigrant sends money back to his family in Lisbon in the form of U.S. currency j. k. U.S. firm receives profits r the factory it previously built in Mexico, in the I. U.S. holding company buys a controlling interest in a Danish firm, pays in Danish m. U.S. company leases a Danish ship to carry beef to England. Payment is in U.S n. Federal Reserve buys dollars from Deutsche Bank (the largest private bank in form of pesos. rone dollars Germany) for euros

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