Which of the following would be included in the financial account of the U.S.balance of payments?
A)The U.S.government foreign aid
B)The purchase of stock in a U.S.corporation by a foreigner
C)The purchase of a Japanese computer by a U.S.corporation
D)The purchase of a plane ticket from Australian Airlines by an American
E)The purchase of a German car by an American

Question

Quizplus · Accepted Answer

The financial account of the balance of payments records transactions that involve financial assets and liabilities, such as investments. The purchase of stock in a U.S. corporation by a foreigner is a financial investment and thus included in the financial account.

Which of the Following Would Be Included in the Financial