Question

Match each transaction to the correct balance of payments account. (Current, Financial, Capital)

A. U.S. Consumers purchase Japanese automobiles.

B. A French company pays dividends to a U.S. citizen who owns shares in its stock.

C. Insurance services from a private U.S. firm are contracted out to an Italian contractor.

D. The Chinese government invests in three-month U.S. treasury bills.

E. A Honduran worker leaves his temporary job in the United States and returns home with six months of wages.

F. The United States government purchases United Kingdom government bonds.

Answer 1

A. U.S. Consumers purchase Japanese automobiles. - Current

B. A French company pays dividends to a U.S. citizen who owns shares in its stock. - Current

C. Insurance services from a private U.S. firm are contracted out to an Italian contractor. - Current

D. The Chinese government invests in three-month U.S. treasury bills. - Financial

E. A Honduran worker leaves his temporary job in the United States and returns home with six months of wages. - Capital

F. The United States government purchases United Kingdom government bonds. - Financial