When a USResident (1)purchases Foreign Treasury Bills and Pays by (2)drawing Down

question 11

Multiple Choice

When a U.S.resident (1) purchases foreign treasury bills and pays by (2) drawing down his bank balances abroad,the U.S.:

• A) debits short-term financial and credits official reserves
• B) debits financial account for (1) and credits financial account for (2)
• C) debits official reserves and credits financial account
• D) credits short-term capital and debits official reserves

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Definitions:

Morality

Principles concerning the distinction between right and wrong or good and bad behavior; a system of values and ethics that guides individuals and societies.

Duty-Based Ethics

An ethical philosophy rooted in the idea that every person has certain duties to others, including both humans and the planet. Those duties may be derived from religious principles or from other philosophical reasoning.

Duties

Obligations or responsibilities imposed by law, contract, or societal norms.

Ethics

A branch of philosophy dealing with what is morally right or wrong, encompassing moral principles that govern an individual's behavior or conducting an activity.