Which of the Following Appears in the Capital Account Part

question 79

Multiple Choice

Which of the following appears in the capital account part of the balance of payments?

• A) A gift to an American from his English aunt.
• B) A purchase by the Honda corporation of a U.S. Treasury bill.
• C) A purchase by the Bank of England of a U.S. Treasury bill.
• D) Income earned by the Honda corporation on its automobile plant in Ohio.

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Definitions:

Employment Contract

A formal agreement that specifies the terms of the relationship between an employer and an employee, including duties, duration, and compensation.

Funds

Financial resources set aside for a specific purpose or investment.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that must be paid out before dividends to common stockholders, typically without voting rights.

Annual Dividend

The sum of money paid by a company to its shareholders out of its profits over the course of a year, usually quoted per share.