Gross capital flows reflect:
A) current account imbalances
B) international indebtedness
C) cross-border banking and flows of securities
D) capital account imbalances

Question

Quizplus · Accepted Answer

Gross capital flows refer to the movement of money for the purpose of investment in productive assets and include cross-border banking and flows of securities, such as bonds and stocks. They capture the movement of capital into and out of a country for investment purposes, rather than reflecting imbalances in the current or capital accounts directly.

Gross Capital Flows Reflect