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If a US Resident Purchases a Foreign Stock for $750

Question 2

Multiple Choice

If a US resident purchases a foreign stock for $750 and pays for it by increasing foreign bank balances in the US,what entries would be made in the US balance of payments?


A) Common stock - credit of $900; Cash - debit of $900
B) Capital outflow - credit of $900; Capital inflow - debit of $900
C) Common stock - debit of $900; Cash - credit of $900
D) Capital outflow - debit of $900; Capital inflow - credit of $900

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