Asked by
Sabrina Krohn
on Nov 26, 2024
Verified
Which of the following is an item in the current account balance of the United States?
A) the purchase of a U.S. company by a foreign company
B) the purchase of stock in a foreign corporation by a U.S. company
C) the purchase of insurance in the United States by a foreign company
D) the purchase of a United States Treasury bond by a wealthy foreigner
Current Account Balance
The balance of trade between a country and its trading partners, reflecting the difference between exports and imports of goods and services.
Foreign Corporation
A company that is registered and operates in a country different from the country where it was incorporated, subject to the laws and regulations of the host country.
Insurance
A financial product that transfers the risk of financial loss from an individual or entity to an insurance company in exchange for premium payments.
- Pinpoint and illustrate the repercussions of international activities on a nation's financial accounts balance.
Verified Answer
AS
Learning Objectives
- Pinpoint and illustrate the repercussions of international activities on a nation's financial accounts balance.