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Balance of Payments question (government bonds help which account is credited and debited, more info below)?

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  • Balance of Payments question (government bonds help which account is credited and debited, more info below)?


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Answer #1 | 29/12 2013 12:29
Can't be completely sure, but I think the following is right: 1. DR UK Claims on foreigners (USA Treasury) CR Foreign claims on UK (USA Banks) Technically, there is no change in the accounts you mentioned, just the cash and the bond accounts 2. DR Foreign claims on UK (Germany) CR Foreign claims on UK (Spain) There is no change to UK claims on Foreigners, because UK only owes in this scenario. If you don't understand what I did, ask. Hope this helps

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