The balance of payments account which records foreign investment in the United States and U.S. investments abroad is the
A) capital and financial account.
B) current account.
C) official settlements account.
D) None of the above because foreign investment in the United States is included in one account and U.S. investment abroad is included in another account.

Question

Quizplus · Accepted Answer

The capital and financial account in the balance of payments records transactions that involve the transfer of capital, such as foreign investment in the United States and U.S. investments abroad. This includes investments in foreign stocks, bonds, and direct investments in business operations.

The Balance of Payments Account Which Records Foreign Investment in the United