Which of the following factors probably does not directly affect a country's capital account and its components?

Question

Quizplus · Accepted Answer

Inflation does not have a direct impact on a country's capital account and its components. Capital account primarily deals with investments and financial flows, which may be affected by interest rates, withholding taxes on foreign income, and exchange rate movements, but not by inflation.

Which of the Following Factors Probably Does Not Directly Affect