If a British business buys US government securities, how will this be entered in the balance of payments?
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A. It will appear in the trade account as an import. |
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B. It will appear in the trade account as an export. |
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C. It will appear in the capital account as a decrease in US assets held by foreigners. |
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D. It will appear in the capital account as a decrease in US assets held by foreigners. |
Both the given options c and d in the question are same
Ans) the correct option should be It will appear in the financial account as an increase in U.S. assets held by foreigners.
If a British business buys US government securities, how will this be entered in the balance...
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Securities - US Treasuries - Mortgage Securities - Loans Gold Certificates SDR Certificates Coins Foreign Currency Assets Other Assets Federal Reserve Notes in Circulation Rev Repos Deposits - Member Bank Accts - US Treasury Acct - Foreign Agency Accts - Other Other Liabilities (+ Capital) Assets Liabilities Federal Notes in Circulation = Fed Notes Held by Public + Fed Notes Held by Member Banks Coins Coins Purchased from US Treasury...
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capital account-current
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