Question: Could you explain to me why the answer D is correct. I thought the correct answer would be C. 22. If a British business buys

Could you explain to me why the answer D is correct.

I thought the correct answer would be C.

22. If a British business buys U.S. government securities, how will this be entered in the balance of payments? a. It will appear in the trade account as an import. b. It will appear in the trade account as an export. c. It will appear in the financial account as an increase in U.S. assets held by foreigners. d. It will appear in the financial account as a decrease in U.S. assets held by foreigners. ANSWER: D

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