Which of the following transactions should NOT be included on the U.S.balance of payments?
A)U)S.imports of Honda automobiles
B)A U.S.based construction firm hired for a construction project in South America
C)An American tourist purchases souvenirs in Spain
D)The U.S.subsidiary of a British firm pays dividends to the parent firm
E)A German purchases a Canadian Treasury bill

Question

Quizplus · Accepted Answer

The U.S. balance of payments records all economic transactions between residents of the U.S. and residents of other countries. A German purchasing a Canadian Treasury bill does not involve the U.S. economy and therefore should not be included in the U.S. balance of payments.

Which of the Following Transactions Should NOT Be Included on the U.S.balance