Direct Investment and Security Purchases Are Included in

question 9

Multiple Choice

Direct investment and security purchases are included in

• A)current account items.
• B)capital account items.
• C)basic balance account items.
• D)unilateral transfers.

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Definitions:

Compounded Annually

Interest added to the principal sum of a deposit or loan once per year, resulting in interest on interest.

Outstanding Balance

The total amount owed on a debt, excluding interest, that remains unpaid.

Compounded Monthly

A method where interest is calculated and added to the principal balance monthly, leading to exponential growth.

Compounded Monthly

Interest on an investment is calculated and added to the principal every month, increasing the amount of future interest earned.