Which of the Following Appears in the Capital Account Part

question 59

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

---

Definitions:

Digital Option

A financial instrument that provides a fixed return if the market price is above (for a call) or below (for a put) a certain level at expiration.

Bull Money Spread

A type of options strategy that is used when an investor expects a moderate rise in the price of the underlying asset.

Calls

Calls are options contracts giving the holder the right, but not the obligation, to buy a specified amount of an underlying security at a predetermined price within a specified time frame.

Option Quotes

Information about the price of an option contract, including its bid and ask prices, and sometimes the volume and open interest.