How will balance of payments on current accounts change

Reference no: EM131530747

Question: How would the following transactions be categorized in the U.S. balance of payments accounts? Would they be entered in the current account (as a payment to or from a foreigner) or the financial account (as a sale of assets to or purchase of assets from a foreigner)? How will the balance of payments on the current and financial accounts change?

a. A French importer buys a case of California wine for $500.

b. An American who works for a French company deposits her paycheck, drawn on a Paris bank, into her San Francisco bank.

c. An American buys a bond from a Japanese company for $10,000.

d. An American charity sends $100,000 to Africa to help local residents buy food after a harvest shortfall.

Reference no: EM131530747

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