A foreign resident increasing her holdings of a U.S. financial asset will be recorded as a debit item in the financial account of the U.S. balance of payments.

Question

Quizplus · Accepted Answer

When a foreign resident increases her holdings of a U.S. financial asset, it is recorded as a credit item in the financial account of the U.S. balance of payments, reflecting an inflow of capital.

A Foreign Resident Increasing Her Holdings of a U