Multiple Choice
If a French company sells 1000 gallons of Perrier to a Canadian company at 25 francs per gallon and uses the money to buy stock in a Spanish cork company,how does this affect the French balance of payments accounts?
A) debit: capital account;credit: merchandise trade
B) debit: merchandise trade;credit: capital account
C) debit: net investment income from abroad;credit: capital account
D) debit: merchandise trade;credit: net investment income from abroad
Correct Answer:
Verified
Correct Answer:
Verified
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