Which of the Following Transactions Would Cause a Capital Inflow

question 166

Multiple Choice

Which of the following transactions would cause a capital inflow to a country?

• A) Exports of goods or services.
• B) Borrowing money abroad.
• C) Purchasing financial assets (e.g. ,a corporate bond)from abroad.
• D) Purchasing real assets (e.g. ,a factory)abroad.
• E) Lending money abroad.

---

Definitions:

Particular Purpose

A specific intent or use for which a product or service is bought, indicating reliance on the seller's advice or expertise.

Implied Warranties

Legal guarantees assumed in transactions, such as the assurance that a product will perform as advertised or is fit for its intended use.

Operation Of Law

Changes in legal status or rights due to the application of law, rather than as a result of an agreement or court order.

Flower Pots

Containers used for planting, growing, and displaying flowers and other plants, made from various materials.