In the U.S. balance of payments, foreign purchases of assets in the United States are a
A) money outﬂow.
B) money inﬂow.
C) current account item.
D) debit, or outpayment.

Question

Quizplus · Accepted Answer

Foreign purchases of assets in the United States are classified as capital inflows, which are part of the capital and financial account in the balance of payments. These inflows represent money coming into the U.S. economy from abroad, and therefore are considered a money inflow.

In the US Balance of Payments, Foreign Purchases of Assets in the in the United