The supply for foreign exchange results from transactions that appear on the
A) credit side of a country's balance of payments statement.
B) debit side of a country's balance of payments statement.
C) both the credit side and the debit side of a country's balance of payments statement.
D) neither the credit side nor the debit side of a country balance of payments statement.

Question

Quizplus · Accepted Answer

The credit side of a country's balance of payments statement represents the inflow of foreign currency into the country, which includes exports of goods and services, income received from foreign investments, and transfers from foreign sources. Therefore, the transactions on the credit side lead to an increase in the supply of foreign exchange.

The Supply for Foreign Exchange Results from Transactions That Appear