If a British businessman sells U.S. government securities to a U.S. buyer, how will this item be entered in the balance of payments?
A. It will appear in the financial account as an increase in foreign assets held by U.S. residents.
B. It will appear in the trade account as an import.
C. It will appear in the financial account as a decrease in the U.S. assets held by foreigners.
D. It will appear in the trade account as an export.
Answer: C
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