An example of an item included in the capital account is
A) the profits made by a U.S. shoe company operating a plant in Vietnam.
B) Dell computers exported to Brazil.
C) a Pepsi-Cola bottling plant in Greece.
D) a stipend paid to a Bulgarian student studying at Baylor University in the United States.

Question

Quizplus · Accepted Answer

The capital account records investment flows between countries, including foreign direct investment, purchases and sales of assets, and transfers of technology. A Pepsi-Cola bottling plant in Greece would be an example of foreign direct investment, which would be included in the capital account. The other options relate to current account transactions, such as exports and income from foreign sources, which would not be included in the capital account.

An Example of an Item Included in the Capital Account