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3. Show how each of the following would affect the U.S. BOP. Your records should include...


3. Show how each of the following would affect the U.S. BOP. Your records should include (i) a de- scription of the transaction being recorded, (ii) which specific account is affected (e.g., exports [EX], home financial account assets [EXAH], etc.), and (iii) the accompanying credit/debit entry.
(a) A U.S. airplane manufacturer imports $600,000 in parts from a Canadian firm. It uses a U.S. bank account to pay for the parts.
(b) The Bank of England (BoE = U.K. central bank) buys $2 million in U.S. Treasury bonds from an American securities firm.
(c) An Italian tourist charges $400 to his MasterCard (issued by an Italian bank) for a hotel room in New York City.
(d) A Chinese catering company purchases $30,000 in helium tanks from a U.S. welding firm. The Chinese catering company uses deposits from a bank in China.
(e) A French firm forgives a $250,000 loan to an oil refinery located in Louisiana following a hurri- cane.
(f) The United States donates $8 million in medical and food supplies to Lebanon following a month-long war.

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