If a Japanese citizen invests in the Australian stock market,the transaction would show up on the capital account of ________.
A)Japan
B)Australia
C)neither Japan nor Australia
D)both Japan and Australia

Question

Quizplus · Accepted Answer

When a Japanese citizen invests in the Australian stock market, the transaction will appear in both Japan and Australia. It will be reflected on the capital account of Japan as an outflow of foreign investment and on the capital account of Australia as an inflow of foreign investment. Therefore, the answer is D, both Japan and Australia.

If a Japanese Citizen Invests in the Australian Stock Market,the