If a Japanese citizen invests in the Australian stock market,the transaction would show up on the capital account in the balance of payments of ________.
A) Japan
B) Australia
C) both Japan and Australia
D) neither Japan nor Australia

Question

Quizplus · Accepted Answer

The capital account in the balance of payments of both Japan and Australia would be affected as the investment involves a flow of capital between the two countries. Japan would record the outflow of capital, while Australia would record the inflow of capital.

If a Japanese Citizen Invests in the Australian Stock Market,the