Capital inflows in the balance of payments accounts include

Question

Quizplus · Accepted Answer

Capital inflows in the balance of payments accounts refer to transactions where foreign entities invest in a country's domestic assets. Purchases of U.S. government bonds by foreigners represent such an inflow, as it involves foreign capital entering the U.S. economy. Choices A, B, and C describe capital outflows, where domestic funds are used to purchase foreign assets or invest abroad.

Capital Inflows in the Balance of Payments Accounts Include