If the residents of a country receive money from their relatives living abroad,it will be counted as:
A) credit in the current account
B) debit in the current account
C) credit in the capital account
D) debit in the capital account

Question

Quizplus · Accepted Answer

Money received from relatives living abroad is considered as a transfer of funds or a gift, which falls under the current account of the Balance of Payments (BOP) system. The current account includes transactions related to trade balance, services, income, and transfers. In this case, the money received from abroad is treated as a transfer and is credited to the current account.

If the Residents of a Country Receive Money from Their