With regard to the capital account

Question

Quizplus · Accepted Answer

All three statements are true. The capital account measures the flow of funds between a country and the rest of the world regarding investments, loans, and transfers of assets. Sales of assets by the U.S. to foreigners are recorded as credits because they bring money into the country, which is a capital inflow. Conversely, purchases of foreign assets by the U.S. are recorded as debits because they lead to capital outflow - the money is leaving the country. The capital account balance is the difference between the credits and debits.

With Regard to the Capital Account