An Example of an Import of a Service in the U.S

question 267

Multiple Choice

An example of an import of a service in the U.S. balance of payments would be when

• A) an U.S. resident purchases a Japanese stereo.
• B) a Norwegian traveling in the United States rides a trolley car in San Francisco.
• C) a U.S. resident buying insurance from a firm in Toronto.
• D) a U.S. firm purchases 100 shares of a Dutch firm.

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Definitions:

Debt Restructuring

The process of negotiating new terms for existing debts to provide relief to the borrower, including changes in interest rates, payment schedules, or the amount owed.

Accrued Interest

Interest that has been incurred but not yet paid.

Recourse

The legal right to demand compensation or payment from the party with primary liability in the event of default.

Contingent Liability

A potential financial obligation that may arise in the future based on the outcome of a specific event.