When capital flows into the United States,it enters the U.S.balance of payments as a positive cash flow.

Question

Quizplus · Accepted Answer

Capital inflows into the United States represent a positive cash flow in the U.S. balance of payments. This is because the balance of payments accounts record all transactions between a country and the rest of the world, including imports, exports, investments, and the movement of capital. When there is a net inflow of capital (i.e. more money is entering the country than leaving it), it is recorded as a positive cash flow in the balance of payments.

When Capital Flows into the United States,it Enters the U