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Classify each of the following as a transaction reported in a subcomponent of the current account or of the capital and financial accounts of the
Classify each of the following as a transaction reported in a subcomponent of the current account or of the capital and financial accounts of the two countries involved: (Note: clearly indicate debit/credit, account, sub-account, country)
a. A German automobile firm pays the salary of its executive working for a subsidiary in Detroit.
b. An American tourist pays for a hotel in Paris with his American Express card.
c. Australian fund managers buy shares of stock on the Hong Kong and London stock exchanges.
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