A Brazilian bank buys shares of stock in Intel, a U.S. high-tech company. In the U.S. balance of payments, this transaction causes the balance on the _____ account to _____.

Question

Quizplus · Accepted Answer

The transaction involves a Brazilian bank buying shares of stock in Intel, which is a financial transaction. Therefore, the transaction will affect the financial account of the U.S. balance of payments. Since the Brazilian bank is buying shares of stock from Intel, it is increasing its holdings of U.S. assets, which will cause the financial account to increase.

A Brazilian Bank Buys Shares of Stock in Intel, a U.S