US Direct Investments: Credit Under the new IMF classification of balance of payments, the international sales or purchases of such intangible assets as trade marks, patents, copyrights, and oil drilling rights are Group _____ transactions. B Kathy Smith, an American international fund manager, pays USD 3,500 to buy a Cathay Pacific Airlines ticket to fly from LA to Hong Kong. This transaction should be recorded in which of the following account? Us Service trade: Debit A ____ is any restriction that limits or alters the rate or direction of capital movement into or out of a country. Capital Control Under the ____ system, a current account deficit is offset by a financial account surplus. This surplus is accomplished through an increase in interest rates, which attracts foreign capital in search of greater returns . Managed Float Jim, who has just inherited a small fortune from his parents, wants to win a seat at Citibank's board of directors. Jim will probably succeed if he _____. 2.5 Million Shares of Preferred Stock Which of the following is a current account transaction? Susan receives $2,250 in cash dividend from her investment in 500 shares of Petrol Total, a Belgian oil company.
Imports of lower-priced goods and services tend to lower the __ rate(s) of a country. Inflation Under the _______ exchange rate system, a government will make use of central bank intervention to keep its balance of payments near zero Fixed The reserves held by official monetary authorities are normally composed of all of the following, except Venezuelan Bolivar WestMed, an Irish pharmaceutical company, pays $25.85 million for a measle patent owned by Johnson and Johnson (USA). This is classified as a Group ___ transaction. B The following is some balance of payments information for Canada: -$2 million George, an American investor, buys 25% of Indonesia’s Far-East Supermarket‘s (a publicly traded company) outstanding common stock . This is recorded in the U.S. balance of payments as ________ and in the Indonesian
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