Final answer:
Unilateral transfers are transfers of cash out of a country without receiving a good or service in return, typically classified as negative in the current account and treated like imports, although exceptions can occur as with the U.S. in 1991 during the Gulf War.
Step-by-step explanation:
Transfers of cash out of one fund to other funds are classified as unilateral transfers in the context of a country's current account balance. These are transactions where payments are made by the government, private charities, or individuals that send money abroad without receiving any direct good or service in return. Examples of unilateral transfers include economic or military assistance from the U.S. government to other countries, spending abroad by charities to address poverty or social inequalities, and personal remittances sent by individuals to family members in other countries. Unilateral transfers are typically recorded as negative in the current account balance since they are outflows of funds and treated like imports. However, there can be exceptions as seen in 1991 when the balance on unilateral transfers for the U.S. was positive due to international payments received to offset U.S. war expenses in the Gulf War.