The basic transfer is defined as
A)net capital inflow.
B)interest payments on foreign debt.
C)net capital inflow divided by interest payments on foreign debt.
D) net capital inflow minus interest payments on foreign debt.

Question

Quizplus · Accepted Answer

The basic transfer is the net flow of income (interest payments on foreign debt) from one country to another deducted from the net capital inflow. Therefore, the correct answer is D, which is the net capital inflow minus interest payments on foreign debt.

The Basic Transfer Is Defined as