Question

Part A: explain in detail:

Classify the following as a transaction reported

in a sub-component of the current account, or

the capital and financial accounts of the

countries involved:

• An Australian food chain imports vegetables from China.
• A Dutch firm engages an Australian firm to provide a service
  
• A Chinese student, residing in Australia, pay for his study at an Australian university
• A US company buys 100% share of a Japanese company.
• An American tourist pays for her stay at a hotel in Melbourne, Australia using her American Express Credit card

Part B:

On August 11,2015, Chinese Yuan's exchange rate against the US Dollar was CNY6.3248/$; while on August 25, 2015, it was CNY6.4129/$. What was the percentage change (use formula in detail, if applicable)? Was it a devaluation or revaluation of the Chinese Yuan? Explain.