MK 640 Balance of Payment Questions

1. Borrowing from WHO to fight Corona in Tanzania USD 500. Dr

2. Interest paid to COVID loan USD 2. Dr
3. Loan repayment on COVID for every 3 months USD 20. Dr
4. The lending of Serengeti USD 100. Cr
5. Earning from that Serengeti USD 3. Dr
6. Purchase of land in Zambia USD 700. Cr
7. Construction of Embassy building in Uganda USD 900. Cr
8. Rent collected from Uganda building USD 100 per year
9. Sale of Ngorongoro to Kenya USD 800. Dr
10. Transfer of Tuition Fee to students abroad USD 1,100. Cr
11. Borrowing from IMF for Stiegler’s Gorge project USD 400. Cr
12. Gant to boost SME business performance from Germany USD 100. Cr
13. To support the Mozambique government to fight flooding USD 50.
14. Export of cash crops USD 350. Cr
15. Import of COVID protection materials USD 50. Dr
16. Interest paid for Stiegler’s Gorge loan USD 3 per month. Dr
17. Loan repayment for Stiegler’s Gorge loan USD 350 per each 3 months dr
18. Penalty for delay in loan repayment for COVID USD 50. Dr

Prepare a Capital Account

Prepare a Financial Account

Is it good to run a trade surplus and bad to run a trade deficit? Why? Why not?