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:

Conservation

A cognitive ability recognized by Jean Piaget that allows a person to determine that a quantity will remain the same despite adjustment of the container, shape, or apparent size.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed or heard.

Egocentric Thought

A mode of thinking, common in early childhood, where an individual perceives the world solely from their own perspective, often failing to recognize others' viewpoints.

Sing

The act of producing musical sounds with the voice, often with a tune.