Security purchases in the United States by foreigners is
A)a credit item in the current account.
B)a debit item in the capital account.
C)a credit item in the capital account.
D)a debit item in the current account.

Question

Quizplus · Accepted Answer

Security purchases in the United States by foreigners represent an investment in the US, which is a capital transaction. As such, it is a credit item in the capital account, meaning that it shows as an inflow of foreign capital into the US economy.

Security Purchases in the United States by Foreigners Is