When a U.S.company purchases $1 million worth of French cheese, the value of that transaction is recorded in the

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The current account records transactions of goods, services, income, and current transfers between a country and other countries. Since the purchase of cheese is a transaction of goods, it would be recorded in the current account. The capital account records capital transfers, such as debt forgiveness and the transfer of ownership of fixed assets. The investment account records investment flows, such as the purchase and sale of long-term assets like stocks and bonds. The transfer account records transfers of wealth without any return, such as foreign aid or gifts. The goods account is not a recognized category in international accounting.

When a USCompany Purchases $1 Million Worth of French Cheese, the Value