When a Japanese company buys a U.S. software company, this transaction will be a:

A.Credit on the current account of the U.S. balance of payments
B.Debit on the current account of the U.S. balance of payments
C.Credit on the financial account of the U.S. balance of payments
D.Debit on the financial account of the U.S. balance of payments

ANSWER:

C.Credit on the financial account of the U.S. balance of payments