The purchase of a U.S. asset by a foreign resident is a

Name: The purchase of a U.S. asset by a foreign resident is a
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Question

Quizplus · Accepted Answer

When a foreign resident purchases a U.S. asset, it involves a financial transaction between the U.S. and the foreign resident. This results in an inflow of foreign investment into the U.S., which is recorded as a surplus item on the financial account of the balance of payments. Therefore, the correct option is D).

The Purchase of a U