Which of the following is included in a nation's current account?
A)Purchases of foreign assets
B)Borrowing from abroad
C)Foreign purchases of U.S.financial assets
D)Investment income receipts
E)Purchases of foreign real property

Question

Quizplus · Accepted Answer

Investment income receipts are included in a nation's current account, as they represent income earned by a country from its investments abroad, such as dividends, interest, and profits from foreign businesses operating within the country. Purchases of foreign assets (A) and foreign purchases of U.S. financial assets (C) would be included in the capital account, while borrowing from abroad (B) would be included in the financial account. Purchases of foreign real property (E) would also be included in the capital account.

Which of the Following Is Included in a Nation's Current