A statement of spending flows into and out of the country during a particular period for
Purchases of assets is called a
A) current account.
B) capital account.
C) net foreign investment account
D) net outflow account.

Question

Quizplus · Accepted Answer

The statement of spending flows for purchases of assets is called the capital account. The current account, on the other hand, deals with the flows of goods, services, and transfer payments, while the net foreign investment account is the difference between capital inflows and outflows. The net outflow account is not a recognized term in international finance.

A Statement of Spending Flows into and Out of the Country