The Receipt of an Interest Payment on a Loan Made

question 24

Multiple Choice

The receipt of an interest payment on a loan made by a U.S.commercial bank to a foreign resident is entered in the U.S.balance of payments as a:

• A)credit in the financial account
• B)credit in the current account
• C)credit in official reserves
• D)debit in unilateral transfers

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Definitions:

Tariffs

Taxes imposed by a government on imported goods.

Imported Oil

Oil that is brought into a country from another, typically used as a critical input for energy production and transportation.

Tariff

A tax imposed by a government on goods and services imported from other countries to increase their price and encourage or protect domestic industry.

Imported Oil

Oil that is bought from foreign countries to meet domestic consumption demands.