Asked by Tamera Inyang on Jul 29, 2024
Verified
The financial account balance is a nation's
A) net investment income minus its net transfers.
B) exports of goods and services minus its imports of goods and services.
C) sale of real and financial assets to people living abroad minus its purchases of real and financial assets from foreigners.
D) domestic investment spending minus domestic saving.
Financial Account Balance
A component of a country's balance of payments that records transactions of foreign investment associated with that country.
Real and Financial Assets
Real assets are physical or tangible assets like real estate, while financial assets are intangible and represent a claim on future income or assets, such as stocks and bonds.
- Determine the functions of diverse accounts in a country's balance of payments, highlighting the current account, capital account, and financial account.
- Scrutinize the motivations and effects of international monetary exchanges.
Verified Answer
YS
yadveer singhJul 31, 2024
Final Answer :
C
Explanation :
The financial account balance of a nation reflects the difference between its sales of real and financial assets to foreigners and its purchases of real and financial assets from foreigners. This includes investments in foreign stocks, bonds, real estate, and other assets.
Learning Objectives
- Determine the functions of diverse accounts in a country's balance of payments, highlighting the current account, capital account, and financial account.
- Scrutinize the motivations and effects of international monetary exchanges.