Which of the following transactions directly leads to a surplus on the U.S. capital and financial account?
A) An American purchases a share of stock on the Tokyo exchange.
B) An American sells wheat to an African nation.
C) A Japanese resident purchases a U.S. government bond.
D) A resident of France visits the United States.

Question

Quizplus · Accepted Answer

C) A Japanese resident purchasing a U.S. government bond directly leads to a surplus on the U.S. capital and financial account because it represents an inflow of capital to the United States. This transaction involves a foreigner investing in U.S. assets, which is recorded as a credit (inflow) in the capital and financial account.

Which of the Following Transactions Directly Leads to a Surplus