The primary income component in a country's current account may reflect income received due to:

Question

​The primary income component in a country's current account may reflect income received due to:

Quizplus · Accepted Answer

Direct foreign investment involves foreign entities investing money into a country, often by setting up businesses or buying existing ones. This results in income being generated within the country which is reflected in its current account. Grants, aid, and gifts do not typically result in income generation and therefore would not be the primary income component in a country's current account.

​The Primary Income Component in a Country's Current Account May

The Primary Income Component in a Country's Current Account May