Home › Bihar Board Class 12 (Arts) › Economics › Open Economy Macroeconomics › What does the capital account of the balance of …
What does the capital account of the balance of payments record?
AGift transfers
BTrade in goods
CAsset transactions
DServices trade
Answer & Solution
Correct answer: C. Asset transactions
Capital account covers cross-border purchases and sales of assets like shares, bonds and debt.
Related questions
Which of these is part of the current account as per the BoP definition?If outflows exceed inflows, all else equal, a currency is likely to come under pressure toAfter Bretton Woods, the principal de facto reserve currency has been theA stronger currency tends to make a nation's exportsWho developed the theory of comparative advantage?Which 1997 event led emerging economies to rethink reliance on free markets?A BoP crisis occurs when a nation cannot pay forThe Bretton Woods system came to an end between which years?