If a Japanese Mutual Fund Buys a Share of Stock

question 182

Multiple Choice

If a Japanese mutual fund buys a share of stock on the New York Stock Exchange, it will be accounted for as a(n) :

• A) subtraction from the U.S. current account.
• B) addition to the U.S. current account.
• C) subtraction from the U.S. capital account.
• D) addition to the U.S. capital account.

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Definitions:

SUTA

State Unemployment Tax Act, the legislation enabling state governments to collect unemployment insurance taxes from employers.

State Rate

A specific tax or fee rate determined by a state government, often applied to sales, income, or property.

Form 941

A tax form used by employers in the United States to report quarterly federal taxes withheld from their employees' earnings.

Social Security

A government program that provides financial assistance to people with insufficient or no income, mainly for the elderly, disabled, and survivors.