ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Harley-Davidson USA purchases $25 million in production machinery from a Japanese company. How is this recorded in the US BOP?
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credit
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debit
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -The balance of payments summarises the economic transactions of an economy with the rest of the world. These transactions include exports and imports of goods, services and financial assets, along with transfer payments (like foreign aid).
Detailed explanation-2: -Andre Prenoor, US entrepreneur, invests $50 million to develop a theme park in Malaysia. 3. A Chinese company sells $1 million worth of berets to the US Army.
There is 1 question to complete.