Which of the following would be included in the financial account of the U.S. balance of payments?
A) The U.S. government's foreign aid
B) The purchase of a 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 a U.S. resident
E) The purchase of a German car by a U.S. resident

Question

Quizplus · Accepted Answer

The purchase of a stock in a U.S. corporation by a foreigner would be included in the financial account, as it represents a financial investment in the U.S.

Answer: C
 The purchase of a Japanese computer by a U.S. corporation would be included in the current account, as it represents a transaction in goods between the U.S. and Japan.

Answer: E
 The purchase of a German car by a U.S. resident would also be included in the current account, as it represents a transaction in goods between the U.S. and Germany.

Which of the Following Would Be Included in the Financial