If a French company sells 1000 gallons of Perrier to a U.S.company at 5 euros per gallon,and uses the money to buy stock in a Spanish cork company,how does this affect the French balance of payments accounts?
A) Debit: capital and financial account; credit: merchandise trade
B) Debit: merchandise trade; credit: capital and financial account
C) Debit: net investment income from abroad; credit: capital and financial account
D) Debit: merchandise trade; credit: net investment income from abroad
Correct Answer:
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