A citizen of Mexico who has lived in El Paso during the past three years has just sent $100 to relatives in Mexico for Christmas. This transaction is

Question

Quizplus · Accepted Answer

This transaction is counted in the U.S. balance of payments as a current account item because it involves the exchange of goods and services (the sending of money) between residents of different countries (Mexico and the U.S.). Specifically, it would be recorded as a debit in the U.S. current account (outflow of money from the U.S.) and a credit in the Mexican current account (inflow of money to Mexico).

A Citizen of Mexico Who Has Lived in El Paso