Which of the following best describes the net flow of dividends and interest payments?
A)part of the current account balance
B)part of net capital outflow
C)part of net exports
D)part of foreign direct investment

Question

Quizplus · Accepted Answer

Dividends and interest payments are part of the current account balance, which includes international trade in goods and services, net income from abroad, and net transfers. Net capital outflow refers to the difference between capital inflows and capital outflows. Net exports refer only to the trade in goods and services. Foreign direct investment refers to the ownership or control of a business enterprise in one country by an entity in another country.

Which of the Following Best Describes the Net Flow of Dividends