When a U.S.resident (1)purchases foreign treasury bills and pays by (2)drawing down his bank balances abroad,the U.S.:

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When a U.S. resident purchases foreign treasury bills, it is recorded as a debit in the capital account because it represents an outflow of capital. Drawing down bank balances abroad to pay for the purchase is recorded as a credit in the capital account, as it represents a reduction in foreign assets held by the U.S. resident.

When a USResident (1)purchases Foreign Treasury Bills and Pays by (2)drawing Down