If a country has a net capital inflow, it is almost certainly experiences both capital inflows and capital outflows.

Question

Quizplus · Accepted Answer

Net capital inflow means that the country is receiving more capital from other countries than it is sending out. This can only happen if there are both capital inflows (money coming into the country) and capital outflows (money leaving the country), but the inflows are greater. For example, a country may be attracting more foreign investment than its citizens are investing in other countries. Therefore, if a country has a net capital inflow, it almost certainly experiences both inflows and outflows.

If a Country Has a Net Capital Inflow, It Is