The Capital Account Is Divided into Three Subcategories: Direct Investment

question 15

Multiple Choice

The capital account is divided into three subcategories: direct investment, portfolio investment, and other investment. "Other" investment involves

• A)acquisitions of controlling interests in foreign businesses.
• B)investments in foreign stocks and bonds that do not involve acquisitions of control.
• C)bank deposits, currency investment, trade credit, and the like.
• D)all of the above

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Definitions:

House of Commons

The lower house of the Parliament of the United Kingdom, consisting of Members of Parliament (MPs) who represent constituencies and are directly elected.

Taxes

A compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

French King

A monarch who ruled over France, a title held by several historical figures in France's monarchy until the French Revolution.

English Liberties

Historical rights and freedoms that originated in English law and influenced American legal traditions.