In the balance of payments of the United States, inflows of foreign currencies to the United States are recorded as

Question

Quizplus · Accepted Answer

Inflows of foreign currencies are recorded as positive entries in the balance of payments since they represent an increase in the country's international reserves. This is because when foreigners exchange their currency for US dollars, they are essentially increasing the demand for US dollars, which strengthens the value of the US currency. Therefore, inflows of foreign currencies are recorded as positive entries in the balance of payments.

In the Balance of Payments of the United States, Inflows