Which of the Following Transactions Directly Leads to a Surplus

question 177

Multiple Choice

Which of the following transactions directly leads to a surplus on the U.S. capital and financial account?

• A) An American purchases a share of stock on the Tokyo exchange.
• B) An American sells wheat to an African nation.
• C) A Japanese resident purchases a U.S. government bond.
• D) A resident of France visits the United States.

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Definitions:

Overdue Account Payable

An obligation owed by a company to a supplier for which payment has not been made within the agreed upon timeframe.

Note Payable

A written promise to pay a certain amount of money, often bearing interest, by a specified date to the holder of the note.

FICA Taxes

Taxes imposed on both employees and employers to fund Social Security and Medicare programs, based on earned wages.

Withheld

Refers to the portion of an individual’s earnings that is not directly paid to the individual by the employer, because it is set aside for purposes such as tax payments.