Suppose Honda purchases a car factory in the United States.This purchase is entered into which of the balance of payments accounts?

Question

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The purchase of a car factory in the United States by Honda would be considered a capital transaction and would therefore be entered into the capital account of the balance of payments. The current account deals with the exchange of goods and services, while the official settlements account tracks transactions between governments. The trade account specifically deals with trade in goods, while the business purchases account is not a recognized category within the balance of payments.

Suppose Honda Purchases a Car Factory in the United States