Author Question: A U.S. tourist travels to Italy and spends 900 during the trip. How is this activity recorded in the ... (Read 47 times)

jace · **on:** Jun 30, 2018

A U.S. tourist travels to Italy and spends 900 during the trip. How is this activity recorded in the U.S. current account?
a. Unilateral transfers account is credited for 900.
b. Unilateral transfers account is debited for 900.
c. Merchandise account is credited for 900.
d. Services account is debited for 900.
e. Merchandise account is debited for 900.

Question 2

Which of the following is included in a nation's current account?
a. Purchases of foreign assets
b. Borrowings from abroad
c. Foreign purchases of U.S. financial assets
d. Investment income receipts
e. Purchases of foreign real property