The purchase of 10,000 shares in a Swiss pharmaceutical firm on the Zurich Stock Exchange by an American mutual stock fund will appear in the U.S. balance of payments as a:

Question

Quizplus · Accepted Answer

The purchase of shares in a foreign company by an American entity represents a financial outflow from the United States, which is recorded as a debit in the financial account of the U.S. balance of payments.

The Purchase of 10,000 Shares in a Swiss Pharmaceutical Firm