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1) Suppose Lufthansa buys 10 Boeing 747s for $150 million in 1991, financed by a five year loan from the US ExportImport Bank There is a one year grace period on principal and interest payments The net impact of this sale in 1991 is:

A) zero change in the U.S. balance of payments in 1991 .

B) a $150 million reduction in the U.S. trade deficit.

C) a $150 million reduction in the U.S. capital account surplus.

D) all of the above.

Basic Finance, Finance

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