Which of the following is included in a nation's capital and financial account?
I. the purchase of foreign stocks and bonds
II. the sale of foreign stocks and bonds
III. importing a piece of capital equipment
A) I only
B) I and II
C) III only
D) I, II and III

Question

Quizplus · Accepted Answer

The capital and financial account of a nation includes transactions that involve financial assets and liabilities that are transferred across countries. This includes both the purchase (I) and sale (II) of foreign stocks and bonds, as these transactions involve the transfer of capital across borders. Importing a piece of capital equipment is part of the current account, not the capital and financial account, as it relates to goods and services.

Which of the Following Is Included in a Nation's Capital