U.S.military aid granted to foreign countries is entered in the

Question

Quizplus · Accepted Answer

U.S. military aid granted to foreign countries is recorded in the current account, specifically under government transfers. This is because it represents a transfer of resources from the government of one country to another, which does not involve a transaction in goods, services, or financial assets that would be recorded in the merchandise trade, capital, or official settlements accounts.

USmilitary Aid Granted to Foreign Countries Is Entered in the