Classify the scenarios as part of the U. S. capital account or the U. S. current account.
1. Al, a U. S. citizen, purchases a vacation home in Ixtapa, Mexico.
2. A U. S. company exports its product.
3. Moira, a U. S. citizen, purchases an imported doll house for her daughter.
4. The Canadian government purchases U. S. Treasury securities.
5. Margarita, a Mexican citizen, receives dividends on stock she owns in Apple, a U. S. company.

The answer is :

1. Capital account

2. Current account

3. Capital account

4. Capital account

5. Current account

Explanation:

Both current and capital account shows connote two halves of a nation's balance of payments.

While current account records transactions relating to the import and export of goods and services, capital account records transactions relating to buy and sell of foreign assets and foreign liabilities during a given period of year.

1. Al, a U.S. citizen, purchases a vacation home in Ixtapa, Mexico. Capital account.

2. A U.S. company exports its product. Current account.

3. Moira, a U.S. citizen, purchases an imported doll house for her daughter Capital account.

4. The Canadian government purchases U.S. Treasury securities Capital account

5. Margarita, a Mexican citizen, receives dividends on stock she owns in Apple, a U.S. company. Current account

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