Suppose an earthquake occurs in Dhaka,Bangladesh,and inflicts massive damages on the city.You raise money to send to aid the victims of the tragedy.How would this transaction be recorded?

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The aid being sent to the earthquake victims in Dhaka, Bangladesh would be recorded as a decrease in the U.S. current account. This is because aid is considered an international transfer payment, which is a unilateral transfer of funds from one country to another without the expectation of receiving anything in return. Therefore, it would be listed as a debit (an outflow) in the U.S. current account, which tracks the flow of goods, services, and unilateral transfers between the U.S. and the rest of the world.

Suppose an Earthquake Occurs in Dhaka,Bangladesh,and Inflicts Massive Damages on the City.You