Which of the Following Would Lead to a Capital Account

question 32

Multiple Choice

Which of the following would lead to a capital account deficit?

• A) purchase of foreign capital by domestic residents
• B) sale of domestic capital to foreign residents
• C) an increase in imports
• D) an increase in official reserves

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 aimed at enhancing corporate governance and accountability, in response to financial scandals.

Securities Fraud

Deceptive practices in the securities markets, including false information, manipulation, or theft, intended to deceive investors or manipulate financial markets.

Computer Fraud and Abuse Act

A U.S. law that prohibits accessing a computer without authorization or in excess of authorization.

Interstate Commerce

Economic activity or trade that crosses state lines within the United States, regulated by federal laws.