Which of the following items will be recorded on the debit side of the balance of payments account of a country?

Question

KollegeApply · Accepted Answer

Unilateral transfer payments made to foreigner Explanation: • Unilateral transfer payments made to foreigners (such as gifts, donations, or remittances sent abroad) involve an outflow of money from the country. • Since it reduces the country’s foreign exchange reserves, it is recorded on the debit side of the balance of payments account.

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