The Receipt of an Interest Payment on a Loan Made

question 4

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 secondary income

---

Definitions:

Net Operating Income

A company's income after operating expenses have been deducted, but before income taxes and interest expenses are taken into account.

October

The tenth month of the year in the Gregorian calendar, often associated with autumn in the Northern Hemisphere.

Refurbishment Company

A business specializing in the process of renovating or restoring products to their original condition or better.

Shipping Container

A large, standard-sized metal box used for transport and storage of goods in international trade.