When a US Company Buys 40 Percent of the Publicly Traded Stock

Multiple Choice

When a U.S. company buys 40 percent of the publicly traded stock of a French company on France's stock market, the U.S. balance of payments records the transaction as an ________.

A) inflow of capital recorded with a plus sign
B) inflow of capital recorded with a minus sign
C) outflow of capital recorded with a plus sign
D) outflow of capital recorded with a minus sign