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

Question

Quizplus · Accepted Answer

The payment of a dividend to a foreign stockholder is considered a debit in the U.S. current account because it represents an outflow of income from the U.S. to another country.

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