Which of the following appears as a positive item on the balance of payments accounts for the United States?
A)the U.S. government sending aid to natural-disaster victims in Asia
B)American tourists spending money in the other countries
C)the purchase of U.S. Treasury bonds by a foreign bank
D)the payment of stock dividends by U.S. firms to foreign shareholders

Question

Quizplus · Accepted Answer

The purchase of U.S. Treasury bonds by a foreign bank is considered a financial inflow and appears as a positive item on the balance of payments, as it represents foreign investment in the U.S.

Which of the Following Appears as a Positive Item on the Balance