Professional Documents
Culture Documents
1. Classify the following as a transaction reported in a subcomponent of the current account or the capital and financial
accounts of Vietnam:
a. A U.S. insurance firm pays for losses of Carina Plaza (District 8) due to the fire in Mar, 2018.
e. The Vietnamese Government pays the salary of ambassador working in the Vietnamese Embassy in the Netherlands.
f. A Vietnamese shipping company pays USD to the Egyptian government for passage of a ship through the Suez Canal.
g. FPT – Vietnam pays the salary of its manager working in FPT Japan.
h. A Vietnamese tourist pays for a Nikon Camera of $1,500 in Tokyo with her HSBC credit card and carries the camera
with him back to Vietnam.
i. A Vietnamese tourist pays for a hotel in Da Nang with her HSBC credit card.
l. The State Bank of Vietnam sell $1 billion of its reserves to prevent the depreciation of the VND.
n. A Vietnamese singer migrates to the U.S. She sells her house in Phu My Hung, gets $10m and brings it to the U.S.
2. Classify the following as a transaction reported in a subcomponent of the current account, the capital and financial
accounts or the official settlements account of the U.S. BoP, using double entry bookeeping:
a. The U.S. Treasury authorizes FED to intervene in the foreign exchange market. FED uses Japanese yen and euros that it
holds as international reserves to buy $5 billion
Solutions:
FA, other investments, “+” [capital inflow to the U.S. economy]
Official reserves , “ +” [International reserves decrease, so “+” ]
b. Honda of America, the U.S. subsidiary of the Japanese automobile manufacturer, receives $275 million from its parent
company in Japan to build a new factory in Texas. The parent company sends the fund using its dollar deposit at Mizuho,
Tokyo.
c. CGV Vietnam buys the movie the Shape of Water from a U.S. company. The payment is drawn from GCV’s deposit
account in Vietcombank.