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.