Question 3 of 16 Map this question has been customized by pling Lindel Townsleya

Question

Question 3 of 16 Map this question has been customized by pling Lindel Townsleyat Northwest Arkansas community college Determine if each item below describes the current account, the capital (finance) account, or neither. Place each item in the correct bin. Neither The Current Account Financial Flows Account Jessica lives in Pennsylvania tracks money flowing into and out of and just purchased her first new foreign financial and physical assets car, a Ford Fusion. Ashley calls New York home, but Hajime lives in Tokyo. He buys she works every other month in 500 shares of Starbucks stock Berlin for Lufthansa, a German Airline. after the company develops a new home coffee machine. includes items like imports, exports Caterpillar based in Peoria, IL retrofits income, and money transfers its Columbus, OH manufacturing facilities for $90 million The United States gives $50 billion to Icelandic villages destroyed by a volcano

Explanation / Answer

Current account - 1. Includes items like imports, exports, income and money transfers.

2. US giving $50 million to Icelandic villages destroyed by a volcano.

3. Ashley working in Germany.

Finance account - 1. tracks money flowing into and out of foreign financial and physical assets.

2. Buying Starbucks shares by Hajime living in Tokyo.

Neither - 1. Jessica buying a new Ford car.

2. Caterpillar retrofitting its Columbus plant.

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