Author Question: A U.S. firm builds a factory in South Africa. This will be entered as a (Read 77 times)

jCorn1234 · **on:** Apr 19, 2019

Question 1

A U.S. individual buys shares in a Swiss company. This transaction will be entered as

◦ a credit in the U.S. current account.
◦ a debit in the U.S. current account.
◦ a credit in the U.S. capital account.
◦ a debit in the U.S. capital account.

Question 2

A U.S. firm builds a factory in South Africa. This will be entered as a

◦ debit in the U.S. capital account.
◦ debit in the U.S. current account.
◦ credit in the U.S. capital account.
◦ credit in the U.S. current account.

fwbard · **Reply #1 on:** Apr 19, 2019

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jCorn1234 · **Reply #2 on:** Apr 19, 2019

Thank you!

fwbard · **Reply #3 on:** Apr 19, 2019

Always glad to help...