In the Capital Account, the Largest Category of International Transactions

question 58

Multiple Choice

In the capital account, the largest category of international transactions is

• A)exports and imports.
• B)net transfers.
• C)net interest.
• D)statistical discrepancy.
• E)foreign investment in the United States.

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Definitions:

Trade Liberalization

The process of reducing tariffs, quotas, and other barriers to allow for the free flow of goods between countries.

Trade Agreements

Formal arrangements between countries to regulate tariffs, quotas, and other trade restrictions to facilitate and encourage international trade.

Trade Barriers

Government-imposed regulations such as tariffs, quotas, and embargoes that restrict the free flow of goods and services between countries.