In Balance-Of-Payments Accounting, the Acquisition of a Foreign Production Facility

Multiple Choice

In balance-of-payments accounting, the acquisition of a foreign production facility by a U.S. firm is a __________ item in the U.S. balance of payments; the deposit of funds in a Foreign bank account by a U.S. citizen __________ item in the U.S. balance of payments.

A) debit; also is a debit
B) debit; is a credit
C) credit; is a debit
D) credit; also is a credit