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 calculated by subtracting the interest payments on foreign debt from the net capital inflow. This is because the net capital inflow represents the amount of money flowing into a country, while the interest payments on foreign debt are the payments that the country must make to service its debt. Subtracting the interest payments from the net capital inflow gives us the basic transfer, which represents the net amount of money that a country receives from abroad.

The Basic Transfer Is Defined as