Suppose an earthquake occurs in Dhaka,Bangladesh,and inflicts massive damages on the city.You raise money to send to aid the victims of the tragedy.How would this transaction be recorded?

Question

Quizplus · Accepted Answer

When money is sent to aid the victims of a tragedy, it represents a transfer of resources from one country to another without an exchange of goods or services. As such, it is recorded as a capital transfer and would result in a decrease in the US current account.

Suppose an Earthquake Occurs in Dhaka,Bangladesh,and Inflicts Massive Damages on the City.You