Question

In the context of the Balance of Payments (BO

  • P , which transaction represents an entry in the Financial Account (Capital Account) that would be recorded as a credit (a positive sign)?
A A foreign company purchases an existing domestic factory (Foreign Direct Investment - FDI).
B A domestic resident receives dividend income from a foreign stock investment.
C A domestic government makes an official foreign aid payment to a developing country.
D A domestic firm pays interest on a loan from a foreign bank.
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