Categories: Economics WAEC

Foreign investment and long term securities in the balance of payment accounts are recorded as?

A. current account transaction
B. capital account transaction
C. balance of trade account transaction
D. invisible balance account transaction

Correct Answer:

Option B – capital account transaction

Explanation

Capital account transaction is the net balance of international investments. In order words, it keeps track of the flow of money between a nation and its foreign partners.

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