A debit transaction would appear on the balance-of-payments as a result of
A) outflows of investment capital.
B) the export of services abroad.
C) transfer payments received by domestic residents.
D) the export of goods abroad.

Question

Quizplus · Accepted Answer

Outflows of investment capital represent money leaving the country, which is recorded as a debit in the balance-of-payments because it signifies a decrease in the country's foreign exchange reserves.

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