Which of the following international transactions would NOT be counted as a balance of payments (BOP) transaction?
A) An American tourist purchases cheese in Milwaukee, Wisconsin.
B) The U.S. subsidiary of a British firm pays profits (dividends) back to its parent firm in London.
C) A Canadian lumber baron purchases a U.S. corporate bond through an investment broker in Seattle.
D) All of the above are considered BOP transactions.

Question

Quizplus · Accepted Answer

The purchase of cheese in Milwaukee by an American tourist would not be considered a BOP transaction because it does not involve the exchange of international currencies or assets.

Which of the Following International Transactions Would NOT Be Counted