U.S. has the following international trades. Please determine the account type (

Question

U.S. has the following international trades. Please determine the account type (current, capital, financial, Official Reserve) and credit/debit entry from the stand point of the U.S. for each of the following trades

1.

Trades Account Type Credit or Debit

1.

Sale of wheat to Great Britain 2. Hotel bills of U.S. tourists in Paris 3. Franchise fees earned by Starbucks 4. Purchase by the Japanese of U.S. residential Real Estate 5. Payments to Indian consultants based in India 6. Interest earnings on loans to Argentina 7. New investment in a German chemical plant by Du Pont 8. Purchase of gold by the U.S. Treasury in IMF 9. Increase in holdings of Euro in IMF 10. Apartment rental of U.S. students when stuyding in Canada

Explanation / Answer

1) Current Account ; Credit

2) Current Account ; Debit

3) Current Account ; Credit

4) Capital Accounnt ; Debit

5) Financial Accounnt ; Debit

6) Financial Account ; Credit

7) Capital Accounnt ; Credit

8) Reserves; Debit

9) Reserves; Debit

10) Finaical, Debit

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