If a Japanese mutual fund buys a share of stock on the New York Stock Exchange,it will be accounted for as:

Question

Quizplus · Accepted Answer

When a Japanese mutual fund buys a share of stock on the New York Stock Exchange, it is considered a foreign investment and is accounted for as an addition to the U.S. capital account. The capital account represents transactions that involve the transfer of ownership of assets, such as stocks or real estate, between countries. Therefore, the correct answer is D) an addition to the U.S. capital account.

If a Japanese Mutual Fund Buys a Share of Stock