In the balance of payments, the net amount of government aid to foreigners plus the net amount of private charitable relief is a
A)deficit.
B)capital account surplus.
C)current account surplus.
D)net transfer payment.

Question

Quizplus · Accepted Answer

Government aid to foreigners and private charitable relief are considered transfer payments, which are payments made without receiving anything in return. The net amount of these payments is a transfer of resources from one country to another and therefore recorded in the current account as a net transfer payment.

In the Balance of Payments, the Net Amount of Government