how-do-foreign-aid-and-remittances-affect-the-net-transfers-component-of-the-cur

Question

How do foreign aid and remittances affect the net transfers component of the current account?

Accepted Answer

They typically result in a positive balance due to funds entering the country.

Answer

They typically result in a negative balance due to funds leaving the country.

Answer

They result in a balanced net transfer component.

Answer

They have no impact on the net transfers component.