The capital account includes
A)the export and import of goods and services.
B)all purchases and sales of assets such as stocks, bonds, bank accounts, real estate, and businesses.
C)all purchases and sales of international reserve assets such as dollars, foreign exchanges, gold, and special drawing rights (SDRs).
D)none of the above

Question

Quizplus · Accepted Answer

The capital account refers to the inflow and outflow of capital or assets, and includes all purchases and sales of assets such as stocks, bonds, bank accounts, real estate, and businesses. The export and import of goods and services are included in the current account. The purchases and sales of international reserve assets such as dollars, foreign exchange, gold, and special drawing rights are also included in the capital account. However, since this question asks for the best choice, the correct answer is B.

The Capital Account Includes