Question: Classify the following as a transaction reported in a sub - component of the current account, or the capital and financial accounts of the two

Classify the following as a transaction reported in a sub-component of the current account, or the capital and financial accounts of the two countries involved:
i. An Australian company hires a U.S. legal firm for a litigation process.
ii. An Australian company acquires 100% of corporate bonds issued by a US firm.
iii. A US student residing in Australia buys a mattress from an Australian retailer.
iv. An Australian company borrows money from a US bank.
v. A German company acquires 2% of shares of an Australian company.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!