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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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.

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