If an American receives dividends from the shares of stock she or he owns in Toyota, Inc., a Japanese firm, the transaction would be recorded on the U.S.balance-of-payments as a
A) capital account debit.
B) capital account credit.
C) current account debit.
D) current account credit.

Question

Quizplus · Accepted Answer

Dividends from foreign investments are recorded in the current account of the balance of payments as credits because they represent income received from abroad.

If an American Receives Dividends from the Shares of Stock