1.White Coral is a Hong Kong household equipment manufacturer. It is planing to enter the U.S market. Currently, it is exporting its products to the U.S to explore the market. This international business activity is considered a form of direct foreign investment (DFI).

	True
	False

2.Consider the following transactions:

(i) The government of Mexico pays a U.S. consulting firm for consulting services provided by the firm.

(ii) J.C. Penney purchases products produced in China that it will sell in its U.S. stores.

(iii) A U.S. investor purchases stocks of Heineken (Netherlands).

(iv) John Hopkins, a U.S. investor, purchases bonds issued by Volkswagen Group (Germany).

How many of them are classified into Financial Account transactions on the U.S. Balance of Payment?:

	None
	One
	Two
	Three
	Four