Capital account transactions include:
I.Foreign purchases of U.S.stocks
II.Goods imports
III.Official financial transactions
IV.Changes in U.S.bank claims on foreign banks
A) I only
B) II only
C) I and IV
D) I, III, and IV

Question

Quizplus · Accepted Answer

Capital account transactions involve the transfer of capital and include foreign investments in domestic assets (like U.S. stocks), official financial transactions, and changes in bank claims on foreign banks. Goods imports are part of the current account, not the capital account.

Capital Account Transactions Include