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Multiple Choice QuestionWhich account summarizes international asset transactions having to do with international purchases and sales of real assets?Multiple choice question.Capital accountCurrent accountExport accountFinancial account

Question

Multiple Choice QuestionWhich account summarizes international asset transactions having to do with international purchases and sales of real assets?Multiple choice question.Capital accountCurrent accountExport accountFinancial account

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Solution

The correct answer is Capital account. The capital account in the balance of payments covers a variety of financial flows—mainly foreign direct investment (FDI), portfolio flows (including investment in equities), and bank borrowing—which have in common the acquisition of assets in one country by residents of another. This includes international purchases and sales of real assets.

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Multiple Choice QuestionThe capital account and financial account sections of the balance-of-payments statement summarizes which of the following?Multiple choice question.International asset transactionsInternational service transactionsInternational currency exchange ratesInternational loan guarantees

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What represents the international sale and purchase of financial assets in BoP?Visible tradeInvisible tradeFinancial accountCurrent account

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