Debt (-) items in the balance-of-payments correspond to anything that
A) involves receipts from foreigners.
B) involves payments to foreigners.
C) increases the domestic money supply.
D) decreases the demand for foreign exchange.

Question

Quizplus · Accepted Answer

Debt items in the balance of payments corresponds to payments to foreigners, such as when a domestic entity borrows money from a foreign lender or when a domestic government pays interest on its foreign debt.

Debt (-) Items in the Balance-Of-Payments Correspond to Anything That