Econ- 7.3 Formative Assessment- Option 1

Properly categorize each international transaction in 2 ways:

1 - Identify if the transaction should be counted in the CURRENT ACCOUNT or FINANCIAL/CAPITAL ACCOUNT 

  2 - Determine if it is a CREDIT or DEBIT for the US.

Transaction: Amy, who is retired and lives in Ecuador, receives her Social Security check from the US government each month.

Properly categorize each international transaction in 2 ways:

1 - Identify if the transaction should be counted in the CURRENT ACCOUNT or FINANCIAL/CAPITAL ACCOUNT 

  2 - Determine if it is a CREDIT or DEBIT for the US.

Transaction: Louise, a French investor, buys $10,000 worth of US Government bonds.

Properly categorize each international transaction in 2 ways:

1 - Identify if the transaction should be counted in the CURRENT ACCOUNT or FINANCIAL/CAPITAL ACCOUNT 

  2 - Determine if it is a CREDIT or DEBIT for the US.

Transaction: BMW pays $1 million to a US shipper for transporting cars from Germany to the US.

Properly categorize each international transaction in 2 ways:

1 - Identify if the transaction should be counted in the CURRENT ACCOUNT or FINANCIAL/CAPITAL ACCOUNT 

  2 - Determine if it is a CREDIT or DEBIT for the US.

Transaction: Kevin, a Texas-based real-estate investor, buys an office building in downtown Tokyo, Japan.

Properly categorize each international transaction in 2 ways:

1 - Identify if the transaction should be counted in the CURRENT ACCOUNT or FINANCIAL/CAPITAL ACCOUNT 

  2 - Determine if it is a CREDIT or DEBIT for the US.

Transaction: Shelia, a resident of New York City, recieves a $300 devidend payment from her prevoious purchase on stock in a South Korean company.