Which of the following would NOT be considered a typical BOP transaction?
A) Toyota U.S.A. is a U.S. distributor of automobiles manufactured in Japan by its parent company.
B) The U.S. subsidiary of European financial giant, Credit Suisse, pays dividends to its parent in Zurich.
C) A U.S. tourist purchases gifts at a museum in London.
D) All are examples of BOP transactions.

Question

Quizplus · Accepted Answer

All the options listed are examples of Balance of Payments (BOP) transactions. A) involves the import of goods, B) involves the flow of income between countries, and C) involves the expenditure of a U.S. tourist abroad, all of which are recorded in the BOP.

Which of the Following Would NOT Be Considered a Typical