Which of the following shows the net difference between how much Americans forgave in debts owed to them by foreigners compared with how much foreigners forgave debts owed to them by
Americans?
A) current account
B) capital account
C) ﬁnancial account
D) net transfers

Question

Quizplus · Accepted Answer

The capital account in a country's balance of payments includes debt forgiveness. It records the net change in ownership of national assets, which includes the forgiveness of debts by foreigners to the country and vice versa, showing the net difference in debts forgiven.

Which of the Following Shows the Net Difference Between How