The _____ account reflects the movement of goods and services into and out of the country. The _____ account reflects the flow of financial assets into and out of the country.
a. universal transfer; financial
b. universal transfer; current
c. current; financial
d. capital; current
e. capital; financial
Question 2
Suppose an economics professor receives a 10,000 royalty check from a foreign publishing company and deposits the amount in a local bank. This transaction would be recorded as:
a. a 10,000 credit entry in the domestic services account.
b. a 20,000 debit entry in the domestic capital account.
c. a 20,000 debit entry in the domestic capital account.
d. a 10,000 credit entry in the domestic capital account.
e. a 10,000 debit entry in the domestic services account.
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