1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kicyunya [14]
3 years ago
7

Explain how each of the following transactions generates two entries—a credit and a debit—in the American balance of payments ac

counts, and describe how each entry would be classified: a. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank. b. An American buys a share of German stock, paying the seller with a check on an American bank. c. The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. d. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check. e. A California winegrower contributes a case of cabernet sauvignon for a London wine tasting. f. A U.S.-owned factory in Britain uses local earnings to buy additional machinery.
Business
1 answer:
ANEK [815]3 years ago
8 0

Answer:

Explanation:

A. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank. - Credit Swiss bank and Debit Capital account as purchase of German Stock

B. An American buys a share of German stock, paying the seller with a check on an American bank. Credit American bank and Debit Capital account as purchase of German Stock

C. The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. Credit American bank and Debit Capital account as foreign currency exchange

D. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check. Credit Traveler's check (Current Account) and Debit Currency transfer (payment for service)

E. A California winegrower contributes a case of cabernet sauvignon for a London wine tasting. it has no financial implication as its a donation.

F. A U.S.-owned factory in Britain uses local earnings to buy additional machinery. No entry as the transaction has nothing to do with country's asset.

You might be interested in
3:Leo's rent is due a few days before he expects to receive his paycheck from work. He takes out a
Lady_Fox [76]

Answer:

I think I think it will be 2:35 or 2:50

4 0
2 years ago
The Chiemsee Knee Replacement Clinic (CKRC) is a sports clinic located at the northern edge of the German Alps. It specializes i
Firdavs [7]

Answer:

Another operating room is needed.

Explanation:

The data collected by the consulting firm reveal that the existing facility does not fulfill the requirement due to more number of people so for this reason they have to build another operating room to quickly facilitate more number of people in less time. There are more number of people comes to the clinic as compared to previous years which compels the authority to build up new operating rooms for the convenience of people that comes for knee replacement.

3 0
3 years ago
If you are an HR Manager , which among these rating sources do you believe in the most crucial?
kupik [55]

Answer:

behaviour

Explanation:

his\her behaviour to collegues matters more for good environment in business

3 0
3 years ago
Credit sales are recorded by crediting an accounts receivable.
Anna35 [415]
The answer to the sentence above is false based on the transaction above. Account Receiveable is an asset account which has "debit" as its natural balance. Recording credit sales will increase the account receivable balance and sales balance, thus an increase in account receivable balance occurs on the debit side.
8 0
3 years ago
Trevor always begins the day with a strawberry milkshake (milk (x1 ) and strawberries(x2) mixed in proportion 1:5). His income i
jenyasd209 [6]

Answer:

Check the explanation

Explanation:

Going by the question that the proportion of milk and strawberry for milk shake is 1:5.

If amount of milk is to be X1 that means the quantity of strawberry (X2) will be 5×X1, i.e., X2=5X1... Equation 1

And in addition, the milk and strawberry are complementary consumables as strawberry is of no use without milk and vice versa.

Budget equation will be as follows:

P1×X1+P2×5X1=M.... Equation 2

Given M=200, P1=15 & P2=1

Putting values in Equation 2

15×X1+1×5X1=200

X1=10 & X2=50(from equation 1)

Answer a)

With change in P1 from 15 to 5

Again putting values in Equation 2

5×X1+1×5X1=200

X1=20 & X2=100.

The total change in the demand of milk will increase from 10 units to 20 units.

Answer b)

Strawberry and milk are complementary goods here for that reason there would be no effect on substitution.

Answer c)

Since there will be no effect on substitution, total effect will be equal to income effect.

7 0
3 years ago
Other questions:
  • At December 31, 2019, Sharon Lee Corporation reported current assets of $343,980 and current liabilities of $196,600. The follow
    14·1 answer
  • Comprehensive Problem 1 Part 4 and Part 6: The following is a comprehensive problem which encompasses all of the elements learne
    15·1 answer
  • What is the difference between technical efficiency and economic efficiency? Technical efficiency in production means that the m
    13·2 answers
  • A small company heats its building and spends ​$8 comma 000 per year on natural gas for this purpose. Cost increases of natural
    6·1 answer
  • What is an Australian ballot?
    14·2 answers
  • A minimum wage is an example of a price floor or minimum price that must be paid. If effective, such a price floor would be ____
    14·1 answer
  • Write a Story for Kumquat​
    5·1 answer
  • Because education has spillover benefits, the private market will: a. underallocate resources to education. b. overallocate reso
    12·1 answer
  • The eu has benefited firms in its member nations because.
    10·1 answer
  • The demand curve intersects the natural monopolist's long-run average total cost curve at a point where long-run average total c
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!