Construct the balance of payments for each country

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Reference no: EM131135139

Consider two fictional economies, one called the domestic country and the other the foreign country. Given the transactions listed in (a) through (g), construct the balance of payments for each country. If necessary, include a statistical discrepancy.

a. The domestic country purchased $100 in oil from the foreign country.

b. Foreign tourists spent $25 on domestic ski slopes.

c. Foreign investors were paid $15 in dividends from their holdings of domestic equities.

d. Domestic residents gave $25 to foreign charities.

e. Domestic businesses borrowed $65 from foreign banks.

f. Foreign investors purchased $15 of domestic government bonds.

g. Domestic investors sold $50 of their holdings of foreign government bonds.

Reference no: EM131135139

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