Which of the Following Would Be Represented as a Debit

question 77

Multiple Choice

Which of the following would be represented as a debit in the U.S.balance of payments?

• A)U.S.purchase of cars from Italy
• B)U.S.sale of beef to Israel
• C)U.S.government receives transfers from foreign governments to support U.S.expenses incurred in Europe
• D)U.S.residents receive gifts of money from friends abroad
• E)income received by U.S.resident from overseas investment

---

Definitions:

Financial Intermediary

An institution that pools investors’ money and invests it on their behalf giving the investors shares of itself. Mutual funds are the primary example.

Indirect Method

A way of calculating cash flows from operations by starting with net income and adjusting for changes in non-cash accounts.

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising capital, advising on mergers and acquisitions, and providing other financial services.

Certificate of Deposit

A savings certificate with a fixed maturity date, specified fixed interest rate, and can be issued in any denomination aside from minimum investment requirements.