Question : The capital account records the flow of ___________and ______________between a country and the rest of the world.
Option 1: capital, financial
Option 2: goods, services
Option 3: transfers, income
Option 4: investments, remittances
Correct Answer: capital, financial
Solution : The correct answer is (a) capital, financial
The capital account records the flow of capital and financial transactions between a country and the rest of the world. It includes activities such as foreign direct investment, portfolio investment, international borrowing and lending, transfers of financial assets, and other capital transfers. The capital account reflects the changes in a country's ownership of foreign assets and liabilities, and it complements the current account, which records transactions related to trade in goods, services, income, and transfers.
Question : The current account includes the balance of trade in goods, balance of trade in _______________and ____________transactions.
Option 1: services, capital
Option 2: transfers, income
Option 3: imports, exports
Question : Which account in the Balance of Payments records the flow of goods, services, and income between residents and non-residents?
Option 1: Current Account
Option 2: Capital Account
Option 3: Financial Account
Option 4: Reserve Account
Question : The financial account of the Balance of Payments records:
Option 1: Imports and exports of goods
Option 2: Income from foreign investments
Option 3: International transfers of funds
Option 4: International borrowing and lending
Question : The capital account of the Balance of Payments records transactions related to:
Question : In the Balance of Payments, the capital account records transactions related to:
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