McKinsey & Company, a U.S. consulting firm, collected $5 million USD consulting fees from European clients. On the US balance of payment statement, this cross-border transaction will A. increase the current account balance. B. Increase the financial account balance. C. decrease the capital account balance. D. have no impact.
McKinsey & Company, a U.S. consulting firm, collected $5 million USD consulting fees from European clients. On the US balance of payment statement, this cross-border transaction will A. increase the current account balance. B. Increase the financial account balance. C. decrease the capital account balance. D. have no impact.
Chapter18: International Trade And Finance
Section: Chapter Questions
Problem 11SQ
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Question
McKinsey & Company, a U.S. consulting firm, collected $5 million USD consulting fees from European clients. On the US balance of payment statement, this cross-border transaction will
A. |
increase the current account balance. |
|
B. |
Increase the financial account balance. |
|
C. |
decrease the capital account balance. |
|
D. |
have no impact. |
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