Categorize each transaction according to the U.S. account to which it belongs and the direction the money flows.

	Account	Direction of flow
An Australian company buys steel from a U.S. firm.
The Federal Reserve buys $2$2 billion worth of euros.
Profits are earned by a U.S. based mining company operating in Mexico.
An English company purchases a U.S. confectionary manufacturer.

Financial account

Payment from foreigners

Factor income

Payment to foreigners

Payment from foreigners

Current account

Financial account

Current account

Answer rating: 100% (QA)

Account Direction of Flow An Australian company buys steel from a US Firm curren... View the full answer