All of the following are credit items in the balance-of-payments, except
A) investment inflows.
B) merchandise exports.
C) payments for American services to foreigners.
D) private gifts to foreign residents.

Question

Quizplus · Accepted Answer

Credit items in the balance-of-payments include transactions that bring money into a country, such as investment inflows (A) and merchandise exports (B). Payments for American services to foreigners (C) also represent a credit because they are earnings from providing services to non-residents. However, private gifts to foreign residents (D) are considered a debit item because they represent money flowing out of the country.

All of the Following Are Credit Items in the Balance-Of-Payments