Use the information in the following table on Canada’s international transactions to answer the following questions.
September 3, 2020
Suppose that the three-month interest rate in Australia is 2 percent and it equals 4 percent in the United States.
September 3, 2020

Q.1: Consider each of the following events. For each, identify whether it should be included in the Canada BOP; where relevant, determine which account that event belongs to determine whether it is a debit or credit entry, [11 MARKS] a. Ford imports $200 million worth of engines made in its motor plant in Toronto. b. Boeing sells 10 767’s worth $500 million to Swiss Air. c. Americans earn $15 million in interest payments on UK government bonds. d. Microsoft pays $5 million in dividends to stockholders in Japan. e. The U.S. government distributes $50 million in foreign aid. f. GM buys Toyota for $1 billion. g. British Petroleum buys Exxon for $750 million. h. While on vacation in France, a Pittsburgh resident has her paycheck direct deposited to her PNC bank account. i. The State of Pennsylvania sells $100 million in state government bonds to Lloyds of London. j. The U.S. government sells $50 million in U.S. Treasury bills to the government of Japan. k. The U.S. government acquires $10 million in gold from the government of Saudi Arabia. [note: your answer is like this: included or excluded; current or financial or capital account; debit or credit entry]

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