A Canadian lumber company purchases a sawmill in the state of Washington.On the U.S.balance-of-payments statement, this transaction appears in the

Question

Quizplus · Accepted Answer

The purchase of the sawmill is a capital and financial transaction, as it involves the acquisition of a physical asset in the United States. Therefore, it would appear in the U.S. capital and financial account, which records international transactions involving the purchase and sale of physical and financial assets.

A Canadian Lumber Company Purchases a Sawmill in the State