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1. With regard to the capital account
A. the capital account balance measures the difference between U.S. sales of assets to foreigners and U.S. purchases of foreign assets.
B. U.S. sales (or exports) of assets are recorded as credits, as they result in capital inflow.
C. U.S. purchases (imports) of foreign assets are recorded as debits, as they lead to capital outflow.
D. all of the above
2. Which of the following would not count as a foreign-exchange reserve held by the central bank of Indonesia?
A. The local currency
B. U.S. dollars
C. SDRs
D. Euro
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