On the U.S.balance-of-payments, the following transactions are debits, leading to payments to foreigners: merchandise imports, travel expenditures, gifts to foreign residents, and overseas investments by U.S.residents.

Question

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These transactions all involve U.S. residents making payments to foreigners, therefore they are recorded as debits on the U.S. balance-of-payments.

On the USbalance-Of-Payments, the Following Transactions Are Debits, Leading to Payments to Payments