Which one of the following items would be a "debit" in a country's balance-of-payments account?
A) exports of merchandise
B) an increase in a domestic citizen's bank account in a foreign bank
C) increased holdings of domestic bonds by foreigners
D) exports of services

Question

Quizplus · Accepted Answer

A debit in the balance-of-payments account records payments made by domestic residents to foreigners. An increase in a domestic citizen's bank account in a foreign bank represents a payment by the domestic resident to a foreign entity, therefore it would be recorded as a debit in the balance-of-payments account.

Which One of the Following Items Would Be a "Debit