Suppose That a Developing Country Receives Foreign Aid in the Form

Multiple Choice

Suppose that a developing country receives foreign aid in the form of a shipment of wheat. Balance-of-payments accountants in that country would record the "debit" item in their accounts as __________ and the credit item as __________.

A) "exports of goods"; "unilateral transfers made"
B) "unilateral transfers received"; "imports of goods"
C) "imports of goods"; "unilateral transfers received"
D) "imports of goods"; "increase in short-term official assets" in the developing Country's banks