1. Boeing imports jet engines produced by Rolls-Royce for $40 million. Boeing makes payment by transferring the funds to a New Your bank account kept by Rolls-Royce. Boeing’s import/payment will be recorded as a________ in the current account, which will be matched by a _______in the capital account from the deposit of the funds by Rolls-Royce.

A. Debit: Credit

B. Debit: Debit

C. Credit: Debit

D. Credit: Credit

2. US importers of steel from China would likely ______ a decrease in US tariffs imposed on steel imports from China. US manufactures of steel would likely _______ a reduction in US tariffs imposed on steel imports from China.

A. Benefit from; Benefit from;  

B. Be hurt by: Benefit from

C. Benefit from; be hurt by

D. Be hurt by; be hurt by