Which of the Following Is a Capital Account Transaction

question 93

Multiple Choice

Which of the following is a capital account transaction?

• A) foreign purchases of U.S.stocks
• B) foreign purchases of U.S.bonds
• C) foreign purchases of U.S.buildings
• D) foreign purchases of U.S.stocks,bonds,and buildings

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Definitions:

International Specialization

The economic strategy of a country focusing its resources on producing goods and services it can produce most efficiently for exchange with others.

World Price

The international market price of a good or service, influenced by global supply and demand.

Diseconomies Of Scale

refers to a situation where, as a company or business expands, its production costs increase, leading to a decrease in efficiency.

Resource Endowments

The natural resources, capital, and other economic assets that a country possesses, impacting its economic potential.