When a Japanese investor buys Australian stock,the Australian capital account _____;when that same Japanese investor receives a dividend from the company,the Australian current account _____.

Question

Quizplus · Accepted Answer

When a Japanese investor buys Australian stock, it is considered a capital transaction and increases the Australian capital account. However, when the same Japanese investor receives a dividend from the company, it is considered an income transaction and decreases the Australian current account.

When a Japanese Investor Buys Australian Stock,the Australian Capital Account