If an American investor buys shares of stock of the German auto manufacturer BMW, the transaction

A. is registered as a debit in the current account, and it decreases private U.S. assets abroad.
B. is registered as a credit in the capital account, and it increases foreign private assets in the United States.
C. is registered as a debit in the capital account, and it increases private U.S. assets abroad.
D. is registered as a credit in the capital account, and it decreases foreign private assets in the United States.


Answer: C

Economics

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