If a Foreign Investor Purchases $800 of US Treasury Bills

question 6

Multiple Choice

If a foreign investor purchases $800 of US treasury bills and pays by drawing down his bank balances in the US by an equal amount,what would the entries be in the US balance of payments?

• A)Treasury stock - credit of $800; Cash - debit of $800
• B)Capital outflow - credit of $800; Capital inflow - debit of $800
• C)Treasury stock - debit of $800; Cash - credit of $800
• D)Capital inflow - credit of $800; Capital outflow - debit of $800

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Definitions:

Mutual Understanding

A shared sense of meaning or agreement between parties or individuals.

Commitment

The act of dedicating oneself to a course of action or cause.

Collaboration

A process where two or more people or groups work together to achieve shared goals.

Breach Client Confidences

The unauthorized disclosure of confidential information shared by a client in a professional setting, undermining trust and ethical standards.