French Company-a french company pays dividends to a U.S. citizen who owns share in its stock

Japanese Autos-U.S. consumers purchase Japanese autos

Italian Contractor-Insurance services from a private U.S. firm are contracted out to an Italian contractor

Chinese Government-The Chinese government invests in three-month U.S. Treasury bills

Honduran Worker-A Honduran worker leaves his temporary job in the United States and returns home with six months of wages

U.K. Bonds-The U.S. government purchases U.K. government bonds

Balance-of-payments accounts are divided into the current account, the capital account, and the financial account. The current account records transactions that pertain to all three categories: (1) goods that refer to the import and export of physical goods, (2) services that are intangible products such as banking and insurance services, and (3) income receipts and payments that refer to income from foreign investments and payments made to foreigners investing in a country. A current account deficit is a situation when a country imports more goods, services, and income than it exports. The opposite situation is called a current account surplus. Persistent deficits mean that one should look at the rest of the balance-of-payments accounts like the capital account and the financial account and details of double-entry bookkeeping. Roll over each item below to read the description of a transaction. Then, drag each transaction to the correct balance-of-payments account French Company Italian Contractor Honduran Worker Japanese Autos Chinese Government U.K. Bonds Capital Account Current Account Financial Account Balance-of-payments accounts are divided into the current account, the capital account, and the financial account. The current account records transactions that pertain to all three categories: (1) goods that refer to the import and export of physical goods, (2) services that are intangible products such as banking and insurance services, and (3) income receipts and payments that refer to income from foreign investments and payments made to foreigners investing in a country. A current account deficit is a situation when a country imports more goods, services, and income than it exports. The opposite situation is called a current account surplus. Persistent deficits mean that one should look at the rest of the balance-of-payments accounts like the capital account and the financial account and details of double-entry bookkeeping. Roll over each item below to read the description of a transaction. Then, drag each transaction to the correct balance-of-payments account French Company Italian Contractor Honduran Worker Japanese Autos Chinese Government U.K. Bonds Capital Account Current Account Financial Account