Purchases of U.S. financial securities by foreigners and borrowing from foreign sources by U.S. firms and residents are
A)current account inflows.
B)current account outflows.
C)capital inflows.
D)capital outflows.

Question

Quizplus · Accepted Answer

Purchases of U.S. financial securities by foreigners and borrowing from foreign sources by U.S. firms and residents are considered capital inflows, as they represent foreign investment entering the U.S. economy.