The flow of private foreign investment and grants and loans is included in a country's
A)current account.
B)capital account.
C)cash account.
D) None of the above.

Question

Quizplus · Accepted Answer

Private foreign investment, grants, and loans are classified as capital flows, which are recorded in a country's capital account in the balance of payments. The current account, on the other hand, records transactions related to the import and export of goods and services, as well as unilateral transfers such as aid and remittances. The cash account is not a standard component of the balance of payments.

The Flow of Private Foreign Investment and Grants and Loans