Credit (+) items in the balance of payments correspond to anything that ?
Correct answer: A. involves receipts from foreigners
- A. involves receipts from foreigners
- B. involves payments to foreigners
- C. increases the domestic money supply
- D. decreases the demand for foreign exchange
Explanation
A credit entry records a transaction that earns or receives foreign exchange, such as exports or income received from abroad. Payments made to foreigners are recorded as debits.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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