MGMT 3100 Study Guide - Final Guide: Ben Bernanke, Foreign Exchange Market, Paul Krugman
9 Feb 2018
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How would each of the following transactions show up on the mexican balance of payments. Indicate the specific (which sub account) account for each transaction. Not need to show double entries (debit and credit) for each transaction, only one entry (either credit:+, or debit: -) is sufficient for each transaction. A mexican auto parts maker sells ps500,000 of parts to a canadian firm. The federal government of canada donates ps10,000,000 of wheat to mexico to help earthquake victims in mexico city. A canadian tourist travels to cancun, mexico and spends ps10,000 on hotels and tequila while on vacation. Senor de la madrid in mexico city receives ps80,000 in interest from deposits in a. Mexican central bank sells foreign currency in foreign exchange markets. (10 marks) We are all in it together, by michael spence, commentary, wsj: jan 2006. China has modest inflation and a reasonable balance between demand and capacity, but is out of external balance.
