If a British businessman sells U.S. government securities to a U.S. buyer, how will this item be entered in the balance of payments?

Question

Quizplus · Accepted Answer

Selling U.S. government securities to a U.S. buyer means that the British businessman is reducing his assets (U.S. government securities) held in the U.S., which results in a decrease in U.S. assets held by foreigners. Therefore, it will appear in the financial account as a decrease in the U.S. assets held by foreigners.

If a British Businessman Sells U