Balance of payments of France and Germany has similar effects to the ones described in
Transaction 3.
Transaction No. 5.
Chase: There is only a transfer in ownership of deposits.
German Exporter: A change in type of assets.
German Commercial Banks: Another Euro-dollar deposit has been created.
Money supply in U.S. remains unaffected.
Money supply in Germany has increased by the size of the new Euro-dollar deposit.
Balance of payments of U.S. is unaffected.
Balance of payments of Germany is unaffected.