Suppose IBM purchases a factory in Japan.This purchase is entered into which of the balance of payments accounts?

Question

Quizplus · Accepted Answer

The purchase of a factory in Japan by IBM represents a capital transaction, which is recorded in the capital account of the balance of payments. The current account includes transactions related to trade in goods and services, while the official settlements account includes transactions related to official reserves (such as central bank interventions). The trade account and purchases account are not part of the balance of payments.

Suppose IBM Purchases a Factory in Japan