When a U.S.company buys shares of stock in a French company on France's stock market,the U.S.balance of payments records the transaction as an ________.
A)outflow of capital with a plus sign
B)outflow of capital with a minus sign
C)inflow of capital with a plus sign
D)inflow of capital with a minus sign

Question

Quizplus · Accepted Answer

The purchase of foreign assets by a U.S. company is recorded as an outflow of capital, which is represented with a minus sign in the U.S. balance of payments.

When a UScompany Buys Shares of Stock in a French Company on Company