Asked by Hayden Benedict on Jun 23, 2024
Verified
A nation's capital and financial account
A) contains inflows of money but not outflows of money.
B) includes service exports and service imports.
C) includes both inflows of money and outflows of money.
D) includes net investment income and net transfers.
Capital and Financial Account
Refers to parts of the balance of payments where capital transfers, investments, and financial derivatives are recorded.
Money Inflows
Financial resources entering a particular entity, such as a business or country, over a period of time.
- Identify the contributions of distinct accounts to a nation's balance of payments, focusing on the current account, capital account, and financial account.
- Assess the drivers and repercussions of capital flows across countries.
Verified Answer
VT
Vibha ThaparJun 23, 2024
Final Answer :
C
Explanation :
The capital and financial account of a nation includes both inflows and outflows of money, reflecting transactions such as investments, loans, and banking flows that affect the nation's financial position with the rest of the world.
Learning Objectives
- Identify the contributions of distinct accounts to a nation's balance of payments, focusing on the current account, capital account, and financial account.
- Assess the drivers and repercussions of capital flows across countries.