The Capital Account Is Divided into Three Subcategories: Direct Investment

question 18

Multiple Choice

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