The Capital Account Is Divided into Three Subcategories: Direct Investment

question 31

Multiple Choice

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

Outer Layer

The external surface or coating of an object or material.

Ileostomy

A surgical opening from the ileum onto the abdominal wall.

Ileum

The last section of the small intestine.

Chyme

The semi-fluid mass of partly digested food that is passed from the stomach to the small intestine for further digestion.