CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

Which of the following would be recorded as a credit in the U.S. balance of payments accounts?
A. The purchase of a German business by a U.S. investor
B. European travel expenditures of an American college student
C. The purchase of a U.S. Treasury bond by a French investment company
Explanation: Since the purchase of a bond by a French company decreases the supply of U.S. dollars on the foreign exchange market, this transaction is accounted for as a credit on the U.S. balance of payments account.

User Contributed Comments 0

You need to log in first to add your comment.