The _________ category of the financial account consists of various short-term and long-term trade credits,cross-border loans,currency and bank deposits,and other accounts receivable and payable related to cross-border trade.
A)direct investment
B)portfolio investment
C)financial derivatives
D)goods trade
E)other investment

Question

Quizplus · Accepted Answer

The "other investment" category includes various cross-border trade-related transactions such as short-term and long-term trade credits, cross-border loans, currency and bank deposits, and other accounts receivable and payable related to cross-border trade. The other options are not related to cross-border trade transactions. Direct investment involves acquiring a lasting interest in an enterprise in another country. Portfolio investment includes transactions of stocks, bonds, and other financial instruments. Financial derivatives include various financial contracts such as options, futures, and swaps. Goods trade involves the physical movement of goods across borders.

The _________ Category of the Financial Account Consists of Various