AuthorTopic: Balance of Payments
Brando
@2010-03-08 16:42:55
Hello,

I partially understand why the BoF must balance to zero since there is double-entry accounting in the current and financial account. However, if a foreigner purchases stock in a US company, the financial account will increase but I cannot see how the current account will decrease by a corresponding amount. Any help would be greatly appreciated.

Thank you.

CFA Discussion Topic: Balance of Payments

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