Question

How would each item be counted in the US balance of payments? Give sign, category (e.g....

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

Homework Answers

Answer #1

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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