Determine which account of the Balance-of-Payments is affected the following transaction: A local company exports rum valued at USS 1 million to the United States. Payment is made to the local company's account at Citibank's local branch. Select one: O a. Capital Account - Capital Transfers O b. Current Account - Imports O.Capital Account - Foreign Direct Investment O d. Capital Account - Portfolio Investment O e. Current Account - Exports

Determine which account of the Balance-of-Payments is affected the following transaction: A local company exports rum valued at USS 1 million to the United States. Payment is made to the local company's account at Citibank's local branch. Select one: O a. Capital Account - Capital Transfers O b. Current Account - Imports O.Capital Account - Foreign Direct Investment O d. Capital Account - Portfolio Investment O e. Current Account - Exports

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 9PA

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Determine which account of the Balance-of-Payments is affected the following transaction: National Commercial Bank, a local company, pays US$1 million in dividends to foreign shareholders. Select one: a. Current Account Transfers O b. Current Account Imports O c. Capital Account Portfolio Investment d. Capital Account Foreign Direct Investment O e. Current Account - Exports
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