An American Tourist Purchases a Leather Jacket While in Italy

question 44

Multiple Choice

An American tourist purchases a leather jacket while in Italy. Which of the following statements is true?

• A) The leather purchase would be considered an import for the U.S. BOP.
• B) This transaction would be properly accounted for in the Current Account of the U.S. BOP.
• C) The leather purchase is considered an import of a good, and thus, considered part of the balance of trade as well.
• D) All of these statements are true.

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Definitions:

Opportunities

Situations or conditions that present chances for progress, advancement, or profit.

Rationally

Pertaining to the use of reason or logical thinking in the decision-making process, often involving analytical and critical methods to solve problems.

Prior Knowledge

The information, understanding, and skills that an individual already possess before learning new information or gaining new experiences.

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Individuals who start, organize, and manage a business venture, taking on financial risks in the hope of profit.