The ____ is made up of business investment, purchases and sales of stocks and bonds, and short term banking transactions that represent flows into and out of a nation.balance of tradecapital accountinternational monetary balancecurrent account
Question
The ____ is made up of business investment, purchases and sales of stocks and bonds, and short term banking transactions that represent flows into and out of a nation.balance of tradecapital accountinternational monetary balancecurrent account
Solution
The statement is referring to the "capital account". The capital account in a country's balance of payments covers a variety of financial flows—mainly investments into and out of the country, but also transactions like acquisitions and mergers. These transactions involve assets like stocks and bonds, as well as banking and other forms of investment.
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