Which of the following would not be counted in the U.S. balance of payments' current account?
A) Helen, an American oil engineer, is a paid adviser to Mexico.
B) Exxon owns oil fields in Mexico.
C) France purchases a new jet fighter aircraft from the Boeing Company in Seattle.
D) Martha receives a $50 dividend check on stock she owns in a business in Mexico.
E) A wealthy Italian purchases numerous antiques in the United States for his Roman villa.

Question

Quizplus · Accepted Answer

Ownership of assets in another country, such as Exxon owning oil fields in Mexico, is recorded in the financial account, not the current account. The current account records transactions involving exports and imports of goods and services, income receipts on assets abroad, and income payments on foreign assets inside the country.

Which of the Following Would Not Be Counted in the U.S