If a US resident purchases a foreign stock for $900 and pays for it by increasing foreign bank balances in the US, what entries would be made in the US balance of payments? A. Common stock - credit of $900; Cash - debit of $900. B. Capital outflow - credit of $900; Capital inflow debit of $900. C. Common stock - debit of $900; Cash - credit of $900. O D. Capital outflow - debit of $900; Capital inflow - credit of $900.

If a US resident purchases a foreign stock for $900 and pays for it by increasing foreign bank balances in the US, what entries would be made in the US balance of payments? A. Common stock - credit of $900; Cash - debit of $900. B. Capital outflow - credit of $900; Capital inflow debit of $900. C. Common stock - debit of $900; Cash - credit of $900. O D. Capital outflow - debit of $900; Capital inflow - credit of $900.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 29CTQ: If a developing country needs foreign capital inflows, management expertise, and technology, how can...

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