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

Question 15

Multiple Choice

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


A) debits short-term financial and credits official reserves
B) debits financial account for (1) and credits financial account for (2)
C) debits official reserves and credits financial account
D) credits short-term capital and debits official reserves

Correct Answer:

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