Which of the Following International Transactions Would NOT Be Counted

question 5

Multiple Choice

Which of the following international transactions would NOT be counted as a balance of payments (BOP) transaction?

• A) An American tourist purchases cheese in Milwaukee, Wisconsin.
• B) The U.S. subsidiary of a British firm pays profits (dividends) back to its parent firm in London.
• C) A Canadian lumber baron purchases a U.S. corporate bond through an investment broker in Seattle.
• D) All of the above are considered BOP transactions.

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Definitions:

Creatine Phosphate

A molecule that stores energy in muscle cells, releasing it quickly to produce ATP during intense physical activity.

ATP

Adenosine triphosphate, a high-energy molecule used as the main energy currency in the cell for metabolic processes.

ADP

Adenosine diphosphate, a molecule involved in energy transfer within cells.

Fermentation

A metabolic process that converts sugar to acids, gases, or alcohol in the absence of oxygen.