The capital and financial account measures
A) foreign investment in the United States minus U.S. investment abroad.
B) capital produced outside of the United States minus capital produced inside the United States.
C) capital used inside the United States but manufactured outside the United States.
D) capital used outside the United States but manufactured inside the United States.

Question

Quizplus · Accepted Answer

The capital and financial account in a country's balance of payments records the net change in ownership of national assets. It includes foreign investment in the country minus the country's investment abroad, making option A correct.

The Capital and Financial Account Measures