The receipt of an interest payment on a loan made by a U.S.commercial bank to a foreign resident is entered in the U.S.balance of payments as a:
A) credit in the financial account
B) credit in the current account
C) credit in official reserves
D) debit in secondary income

Question

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The receipt of an interest payment on a loan made by a U.S. commercial bank to a foreign resident would be considered a credit in the current account of the U.S. balance of payments, as it represents an inflow of funds from abroad for services provided (interest payments). The financial account records transactions related to lending, investments, and other financial flows, while official reserves refer to the foreign currency reserves held by a country's central bank. Debits in secondary income refer to transfers of funds that do not involve a service or good, such as foreign aid or remittances.

The Receipt of an Interest Payment on a Loan Made