The demand for foreign exchange results from transactions that appear on the
A) credit side of a country's balance of payments statement.
B) debit side of a country's balance of payments statement.
C) both the credit side and the debit side of a country's balance of payments statement.
D) neither the credit side nor the debit side of a country balance of payments statement.

Question

Quizplus · Accepted Answer

The demand for foreign exchange arises from transactions on the debit side of the balance of payments statement. These transactions include imports of goods and services, investment in foreign countries, and payments of interest and dividends to foreign investors.

The Demand for Foreign Exchange Results from Transactions That Appear