A Purchase of Foreign Goods Within the U

question 64

Multiple Choice

A purchase of foreign goods within the U.S.will be recorded in the BOP as

• A)an asset in the current account.
• B)a debit in the current account.
• C)because the purchase is made in the U.S.,it will have no record in the BOP.
• D)a liability in the foreign transfer account.

---

Definitions:

Geology

The science that deals with the Earth's physical structure and substance, its history, and the processes that act on it.

Structuralism

A theoretical paradigm in the humanities and social sciences that emphasizes the understanding of cultural and social phenomena in terms of the relationships and structures that shape them.

Oceanic Trench

Deep, elongated depressions in the ocean floor formed by the subduction of a tectonic plate under another.

Mid-Ocean Ridge

An underwater mountain range, formed by plate tectonics, that encircles the globe along the ocean floor.