General Dynamics sends a dividend check to an investor in the United Kingdom. This is a debit entry in the U.S. balance of payments.

Question

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When General Dynamics sends a dividend check to an investor in the United Kingdom, it is recorded as a debit in the U.S. balance of payments because it represents an outflow of money from the U.S. to a foreign investor, reducing the U.S.'s financial account balance.

General Dynamics Sends a Dividend Check to an Investor in the United