For the following question assume the following facts: (1) Balance of Payments = 0 prior to the transactions. (2) Person A (who lives in the United States) purchases an airplane from British Airways for $150,000. (3) Person A pays with a check from his account at First Union Bank in the United States. (4) British airways, since it will need dollars in 1 month, deposits the check at the Bank of England. (5) Bank of England deposits the $150,000 at Commonwealth bank, which is located in the United States. Due to the transactions above, what are the effects on the balance of payments?
A.
-$150,000 due to import of good (current account debit)
B.
+$150,000 due to import of good (current account credit)
C.
-$150,000 due to deposit of Bank of England (capital account debit)
D.
+$150,000 due to deposit of Bank of England (capital account credit)
E.
No effect (150,000 current account debit and 150,000 capital account credit)