Which Transaction Represents a Debit in the Current Account Section

question 75

Multiple Choice

Which transaction represents a debit in the current account section of the U.S. balance of payments?

• A) The Arab Capital Investment Corporation makes a loan to a U.S. firm.
• B) A U.S. subsidiary exports raw materials to the Canadian parent company.
• C) U.S. tourists in Great Britain purchase pounds with dollars in order to buy souvenirs.
• D) U.S. firms and individuals receive dividends from their investments in Latin America.

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Definitions:

Systematic

Refers to a method or process being carried out using a fixed plan or system, in a thorough and organized manner.

Formal Operational Thinking

The stage in Jean Piaget's theory of cognitive development where individuals gain the ability to think abstractly, logically, and systematically.

Logical Necessity

A condition or proposition that cannot be otherwise because of the inherent nature of logic or rationality.

Metacognition

The ability to think about one’s own thought processes.