13 Views

Question : Which of the following is an example of a capital outflow in the balance of payments?

Option 1: Export of goods and services
 

Option 2: Import of goods and services
  

Option 3: foreign investment in domestic assets

 

Option 4: Domestic investment in foreign assets


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 8th Jan, 2024

Correct Answer: Domestic investment in foreign assets


Solution : The correct option is d) Domestic investment in foreign assets

A capital outflow refers to the movement of funds or investments from one country to another. It represents the flow of capital from the domestic economy to foreign economies. Domestic investment in foreign assets, such as purchasing foreign stocks, bonds, or real estate, is an example of a capital outflow. This outflow of capital contributes to the balance of payments, which records all transactions between residents and non-residents in a country's economy.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
VIT Bhopal University | M.Tec...
Apply
M.Tech admissions open @ VIT Bhopal University | Highest CTC 52 LPA | Apply now
Amity University | M.Tech Adm...
Apply
Ranked amongst top 3% universities globally (QS Rankings).
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024) | 30+ Specializations | AI Powered Learning & State-of-the-Art Facilities
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books