PRC-3 · Chapter 20 · Question 14 of 30
A Pakistani citizen working in Dubai sends a portion of his monthly salary back to his family in Lahore. In the Balance of Payments, this inflow of money is recorded as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Remittance / Current Transfer (Current Account)
Explanation
Workers' remittances are recorded as current transfers (or secondary income) within the Current Account, as they represent one-way flows of money without any physical good exchanged.
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