Foreign currency balance of payments, current account & capital
Why would a U.S. resident ever wish to acquire foreign currencies? Relate to transactions in the current account and the capital account.© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/economics/economic-history-and-theory/foreign-currency-balance-of-payments-current-account-capital-267
...ells the US dollar to the foreign country to acquire some foreign currency. This may happen because the person needs to spend in that foreign country, and he cannot buy it by US dollar.
1) Current Account: Current Account transactions can be divided into three separate components: (i) net exports of goods and services, (ii) investment income from assets ...