A credit transaction would appear on the balance-of-payments as a result of
A) the import of goods and services.
B) domestic residents touring overseas.
C) transfer payments made to foreign relatives.
D) an inflow of investment capital.

Question

Quizplus · Accepted Answer

A credit transaction would appear on the balance-of-payments as a result of an inflow of investment capital, which refers to money that is invested in a foreign country in order to gain a financial return, such as through purchasing stocks or bonds. This represents a positive transfer of funds into the country and is recorded on the credit side of the balance of payments.

A Credit Transaction Would Appear on the Balance-Of-Payments as a Result