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In the summer of 2018, Bayer, a German company with core operations in health care and agriculture, acquired Monsanto (headquartered in St. Louis, MO) for

In the summer of 2018, Bayer, a German company with core operations in health care and agriculture, acquired Monsanto (headquartered in St. Louis, MO) for $63 billion. Which of the following best describes how this transaction would be recorded in the US Balance of Payments accounts?

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A debit to the US current account in the category of merchandise.

A credit to the US financial account in the category of foreign direct investment.

A credit to the US current account in the category of foreign acquisitions.

A debit to the US financial account in the category of foreign direct investment.

A credit to the US financial account in the category of portfolio investment.

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