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If a Foreign Investor Purchases $800 of US Treasury Bills

Question 3

Multiple Choice

If a foreign investor purchases $800 of US treasury bills and pays by drawing down his bank balances in the US by an equal amount,what would the entries be in the US balance of payments?


A) Treasury stock - credit of $800; Cash - debit of $800
B) Capital outflow - credit of $800; Capital inflow - debit of $800
C) Treasury stock - debit of $800; Cash - credit of $800
D) Capital inflow - credit of $800; Capital outflow - debit of $800

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