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Problem3 Solution 1
Problem3 Solution 1
(a) For each of these transactions, record the corresponding credit-debit pair in the US
CA and/or the US KFA.
CA KFA
Credit Debit Credit Debit
I 500M 500M
II 200M 200M
III 100M 100M
IV 100M 100M
(b) Assuming that these are all the transactions of the year, what is the US current
account balance?
It is -300Million Dollars
(c)
F
S
F
S
H
S
H
S
F
I
F
I
H
I
H
I
CA Surplus
$ 300 M.
CA Deficit
($ 300 M).
USA Foreign
,
H H
S I ,
F F
S I
H
r
F
r
w
r