Question

The receipt of dividends and interest from abroad as a result of ownership of foreign assets by a country's residents is recorded as what:____________.

Answer 1

Answer:

income-generating assets under the current account of the balance of payment.

Explanation:

In international trade to balance of payments between countries looks at inflow and outflow of funds as a result of trade.

When there is balance of trade deficit the country imports from others. When there is balance of payment surplus the country exports to others.

The fund movement is recorded in various accounts. These are current account, capital account, and financial account.

The current account is used to record funds recieved from goods, services, income, and current transfers.

The receipt of dividends and interest from abroad as a result of ownership of foreign assets by a country's residents is recorded as

income-generating assets under the current account of the balance of payment.