Which Transaction Represents a Debit in the Current Account Section

question 75

Multiple Choice

Which transaction represents a debit in the current account section of the U.S. balance of payments?

• A) The Arab Capital Investment Corporation makes a loan to a U.S. firm.
• B) A U.S. subsidiary exports raw materials to the Canadian parent company.
• C) U.S. tourists in Great Britain purchase pounds with dollars in order to buy souvenirs.
• D) U.S. firms and individuals receive dividends from their investments in Latin America.