The capital account measures
A)the sum of U.S.sales of assets to foreigners and U.S.purchases of foreign assets.
B)the difference between U.S.sales of assets to foreigners and U.S.purchases of foreign assets.
C)the difference between U.S.sales of manufactured goods to foreigners and U.S.purchases of foreign products.
D)none of the options

Question

Quizplus · Accepted Answer

The capital account in balance of payments accounting captures the difference between a nation's sales of assets to foreigners and its purchases of assets from foreigners. It reflects the net change in ownership of national assets.

The Capital Account Measures