When Australia sends money to the Philippines to help typhoon survivors, the transaction is recorded in the:

Question

Quizplus · Accepted Answer

The transfer of money from Australia to the Philippines is a transaction that falls under the current account of the Balance of Payments (BOP) system. The current account records all transactions related to the import and export of goods and services, as well as the transfer of funds from one country to another. The capital account records transactions related to purchase and sale of assets, while the financial account records investments and loans between countries. The foreign exchange account is not a part of the BOP system.

When Australia Sends Money to the Philippines to Help Typhoon