Which of the following transactions would be included in Japan's current account?
A)A Japanese citizen purchases 50 shares of Google stock.
B)An American citizen purchases 50 shares of Toshiba stock.
C)A Japanese citizen purchases a new Toyota made in Japan.
D)An American citizen purchases a new Toyota made in Japan.

Question

Quizplus · Accepted Answer

Transactions involving the export or import of goods and services, such as an American citizen purchasing a new Toyota made in Japan, are included in a country's current account. This reflects the trade balance, which is a part of the current account. Purchases of stocks are considered financial transactions and are recorded in the financial account, not the current account.

Which of the Following Transactions Would Be Included in Japan's