If a U.S. citizen invests in the Brazilian stock market, the transaction would show up on the capital accounts of both the United States and Brazil.

Question

Quizplus · Accepted Answer

When a U.S. citizen invests in the Brazilian stock market, it involves a cross-border investment and thus would be recorded on the capital accounts of both countries. The U.S. would record the outflow of capital while Brazil would record the inflow of capital.

If a US Citizen Invests in the Brazilian Stock Market, the Transaction