A financial investor from Los Angeles purchases bonds issued by the government of Peru. In the accounting for U.S. international transactions, this transaction would appear in the _____, and it would be entered as a payment _____ foreigners.

Question

Quizplus · Accepted Answer

This transaction involves the purchase of foreign assets (bonds issued by the government of Peru) by a U.S. resident, which is recorded in the financial account of the U.S. balance of payments. It is entered as a payment to foreigners because the U.S. investor is sending money abroad to purchase the bonds.

A Financial Investor from Los Angeles Purchases Bonds Issued by the Government