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Below are five items that would be included in the balance of payments for the United States. Sort each item into either the current account or the capital account.

a. a Japanese citizen earns dividend income on shares of stock of a U.S. firm
b. a U.S. citizen buys a vacation home in Acapulco, Mexico
c. a U.S. citizen buys a BMW made in Germany
d. a Japanese citizen donates money to a U.S. charity

Sagot :

The following items would be in the current account:

a U.S. citizen buys a vacation home in Acapulco, Mexico

c. a U.S. citizen buys a BMW made in Germany

The following items would be in the capital account:

A Japanese citizen earns dividend income on shares of stock of a U.S. firm.

a Japanese citizen donates money to a U.S. charity

The current account records information on  the flow of tangible goods and services in a country.  

Components of the current account

  1. Trade balance - it records import and export.  
  2. Net income - it records the income received by a country's residents less the income paid to foreigners.
  3. Transfers - it includes income sent to a country by its citizens working in foreign countries.

The capital account is used to record capital transfers and investments.

To learn more  about a current account, please check: brainly.com/question/24029724

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