16.

Could you explain to me why when US get capital inflow, this is going to be a debit.

17.

Could you explain to me why this is not about capital account. It seems to me that this is talking about financial assets.

16. A U.S. resident increasing her holdings of a foreign financial asset causes a: a. Credit in the U.S. current account. b. Debit in the U.S. current account. c. Credit in the U.S. capital account. d. Debit in the U.S. capital account. ANSWER: D 17. A foreign resident increasing her holdings of a U.S. financial asset causes a: a. Credit in the U.S. current account. b. Debit in the U.S. current account. c. Credit in the U.S. capital account. d. Debit in the U.S. capital account. ANSWER: A