Which of the following is not included in the balance of the financial account of the United States?
A)a purchase of Toyota stock by Ford
B)a purchase of GE stock by a firm in China
C)a purchase of U.S.car manufacturing plant by Toyota
D)a purchase of a German brewery by the U.S.company,Budweiser
E)a purchase of German legal services by Chase Manhattan Bank

Question

Quizplus · Accepted Answer

The financial account of the United States includes transactions that involve financial assets and liabilities that cross international borders. Choices A, B, C, and D all involve the purchase of assets (stocks, companies) which are part of the financial account. Choice E, the purchase of German legal services by Chase Manhattan Bank, is not included in the financial account because it is a transaction related to services, not financial assets or liabilities, and would instead be recorded in the current account under services.

Which of the Following Is Not Included in the Balance