When a Foreigner Buys Shares in a U

question 101

Multiple Choice

When a foreigner buys shares in a U.S. company, the transaction

• A) is registered as a credit in the capital account, and it decreases foreign private assets in the United States.
• B) is registered as a debit in the current account, and it decreases private U.S. assets abroad.
• C) is registered as a credit in the capital account, and it increases foreign private assets in the United States.
• D) is registered as a debit in the capital account, and it increases private U.S. assets abroad.

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Definitions:

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