When a US Importer Buys 100,000 Pairs of Pants from a Hong

question 295

Multiple Choice

When a U.S. importer buys 100,000 pairs of pants from a Hong Kong company, this transaction will represent a(n)

• A) inflow of money on the current account of the U.S. balance of payments.
• B) outflow of money on the current account of the U.S. balance of payments.
• C) credit on the financial account of the U.S. balance of payments.
• D) debit on the financial account of the U.S. balance of payments.

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