If a USFirm Borrows from an American Bank and Then Converts That

question 38

Multiple Choice

If a U.S.firm borrows from an American bank and then converts that money to euros to exchange for French wine,it will be accounted for as:

• A) a subtraction from the U.S.capital account.
• B) an addition to the U.S.current account.
• C) a subtraction from the U.S.current account.
• D) an addition to the U.S.capital account.

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Definitions:

Structures

The arrangement or organization of parts as dominant in a society, or in any particular context, defining its framework and function.

Figuration

A concept in sociology that refers to the dynamic patterns of interdependence among individuals or between individuals and society.

Interrelationships

The way in which two or more concepts, objects, or people are connected, affecting or influencing each other.

Norbert Elias

A German sociologist known for his work on the theory of civilizing processes, exploring the development of manners, social behavior, and the state's role.