Respuesta :
Answer:
The answers are (1) Current account, payment from foreigners (2) Financial account, payment to foreigners (3) Current account, payment from foreigners (4) Financial account, payment from foreigners.
Explanation:
Solution
Now, when dollars enters from the rest of the world into the United States, this is a payment from foreigners, also when dollars flow form The United States to the rest of the world, this is a payment to foreigners.
The sale and purchase of goods and services is recorded or captured in a current account. the flow of capital is captured in a financial account. now from the analysis above the answers is given below:
(1) An Australian company buys steel from a U.S. firm.
Answer :Current account, payment from foreigners
(2) $2 billion euros worth is bought by the Federal Reserve
Answer : Financial account, payment to foreigners
(3) Profits are earned by a U.S. based mining company operating in Mexico.
Answer : Current account, payment from foreigners
(4) n English company purchases a U.S. confectionary manufacturer.
Answer: Financial account, payment from foreigners.
The transactions given are categorized below:
1. An Australian company buys steel from a US Firm.
- Account: Current Account
- Direction of Flow: Payment to foreigners
2. The federal reserve buys $252 billion worth of euros.
- Account: Financial Account.
- Direction of Flow: Payment to a foreigner.
3. Profit earned by a US based mining company operating in Mexico
- Account: Current account.
- Direction of Flow: Payment from foreigners
4. An English company buy a US confectionery manufacturer.
- Account: Financial Account
- Direction of Flow: Payment from Foreigners.
Learn more about transactions on:
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