Capital account deals with all of the following except one, which one:
A) Flows of capital funds between countries.
B) Purchases of domestic bonds by foreigners.
C) Payments for buying foreign goods.
D) Inflow and outflow of financial capital.

Question

Quizplus · Accepted Answer

The capital account in balance of payments accounting primarily deals with flows of investment and financial capital across borders (A, B, D). It does not deal with payments for buying foreign goods; that is recorded in the current account.

Capital Account Deals with All of the Following Except One