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What happens to France's BOP if LMVH, a French luxury goods company, buys 1.5M of consulting services from a British subsidiary of BCG. LMVH pays
What happens to France's BOP if LMVH, a French luxury goods company, buys 1.5M of consulting services from a British subsidiary of BCG. LMVH pays by writing a check on its bank account at Societe Generale in Paris, and BCG deposits the check at Banque Paribas, also in Paris. A. Current account records a debit item of 1.5M and financial account records a credit item of 1.5M B. Current account records a credit item of 1.5M and financial account records a debit item of 1.5M C. Financial account records a debit item of 1.5M and financial account records a credit item of 1.5M D. Current account records a credit item of 1.5M and current account records a debit item of 1.5M
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