Asked by Abigail Kooiker on Jul 30, 2024

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Which of the following appears as a positive item on the balance of payments accounts for the United States?

A) the U.S. government sending aid to natural-disaster victims in Asia
B) American tourists spending money in the other countries
C) the purchase of U.S. Treasury bonds by a foreign bank
D) the payment of stock dividends by U.S. firms to foreign shareholders

Positive Item

An item or aspect that contributes positively to a situation, often enhancing quality or effectiveness.

Balance Of Payments

A comprehensive record of a country's financial transactions with the rest of the world, including trade, investment, and monetary movements.

Treasury Bonds

Long-term government debt securities with a maturity of more than ten years, offering periodic interest payments to the holder.

  • Uncover and interpret the ramifications of cross-border exchanges on the economic balance of a country.
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ZK
Zybrea KnightAug 03, 2024
Final Answer :
C
Explanation :
The purchase of U.S. Treasury bonds by a foreign bank is considered a financial inflow and appears as a positive item on the balance of payments, as it represents foreign investment in the U.S.