How would each item be counted in the US balance of payments? Give sign, category (e.g. export, FDI, income flow, etc.) and account (CA, FA or OR).
Debit/Credit |
Category |
Account |
|
Walmarts, a US retailer, buys cut flowers from Chile |
|||
Goldman Sachs, a US investment firm, earns $10m on its operations in London and sends the money back to NY. |
|||
The US government gives $5m to the South African government to build health clinics |
|||
Tata, an Indian firm, builds a new facility in California |
|||
Aetna insurance company, an American firm, buys stock in Japanese corporations |
Answer :
Particulars | Debit/Credit | Category | Account |
Walmarts, a US retailer, buys cut flowers from Chile | Debit | Import | CA |
Goldman Sachs, a US investment firm, earns $10m on its operations in London and sends the money back to NY. | Credit | Income Flow | OR |
The US government gives $5m to the South African government to build health clinics | Debit | FDI | FA |
Tata, an Indian firm, builds a new facility in California | Credit | Income Flow | FA |
Aetna insurance company, an American firm, buys stock in Japanese corporations | Debit | FDI | CA |
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