Which of the Following Transactions Would Be Excluded in the Capital

question 29

Multiple Choice

Which of the following transactions would be excluded in the capital account?

• A) A Japanese citizen purchases a U.S. Treasury bill.
• B) A Japanese citizen purchases an office building in Manhattan.
• C) A U.S. citizen purchases a share of stock from a Japanese company.
• D) An American purchases a Toyota.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a set of data values around the mean (average) of those values.

Expected Profit

The forecasted amount of profit that a business or investment is projected to earn over a specific period.

Japanese Yen

The official currency of Japan, often represented by the symbol ¥.

Risk Averse

A risk-averse individual prefers certainty over uncertainty and would opt for a guaranteed outcome over a gamble with potentially higher, yet uncertain, rewards.