Credit entries on the Balance of Payments are the entries that would
A)mean a loss of foreign exchange.
B)bring foreign exchange into the country.
C)indicate a surplus exists.
D)exist at the bottom line after all accounts are totaled.

Question

Quizplus · Accepted Answer

Credit entries on the Balance of Payments indicate a inflow of foreign exchange into the country, which means there is a surplus in the account. Therefore, option B is correct. Options A and C are incorrect as they suggest a loss of foreign exchange while credit entries indicate a surplus. Option D is also incorrect as credit entries can exist in various accounts on the Balance of Payments and not just at the bottom line.

Credit Entries on the Balance of Payments Are the Entries