The payment of a dividend by an American company to a foreign stockholder represents
A)a debit in the U.S. capital account.
B)a credit in the U.S. current account.
C)a credit in the U.S. official reserve account.
D)a debit in the U.S. current account.

Question

Quizplus · Accepted Answer

The payment of a dividend by an American company to a foreign stockholder represents a debit in the U.S. current account. This is because the payment represents a transfer of funds from the U.S. to a foreign country, which is recorded as a current account transaction.

The Payment of a Dividend by an American Company to a Foreign