If you're seeing this message, it means we're having trouble loading external resources on our website.

If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked.

Main content

The balance of payments

AP.MACRO: MEA‑4 (EU), MEA‑4.A (LO), MEA‑4.A.1 (EK), MEA‑4.A.2 (EK), MEA‑4.A.3 (EK), MEA‑4.A.4 (EK), MEA‑4.A.5 (EK), MEA‑4.A.6 (EK)


Mr. Frank is a citizen of Gatorland. He wants a better return on his savings than he gets in Gatorland, so he buys newly issued government bonds from the nation of Hamsterville.
How is this purchase counted in the balance of payments in each country?
Choose 1 answer: