Foreign aid transfers are part of the _____ account.

Question

Quizplus · Accepted Answer

Foreign aid transfers are considered transactions in the current account because they are transfers of money from one country to another for the purpose of providing assistance or aid. The current account includes transactions in goods, services, income, and current transfers. The capital account includes transactions in assets and liabilities, such as foreign direct investment, portfolio investment, and borrowing. The trade account specifically refers to transactions in goods only.

Foreign Aid Transfers Are Part of the _____ Account