Which of the following is NOT included in the financial account of the balance of payments?...

Which of the following is NOT included in the financial account of the balance of payments?

a. Direct investment.

b. Investment income.

c. Portfolio investment.

d. Financial derivatives.

Solutions

Expert Solution

the answer will be that the financial derivatives will not be included in the financial account balance of payments .

the financial account of the balance of payment include the following:

direct investment : as the investment is done in the any of the assets or shares of other country

Investment Income : the income from the above investment will be recorded in the financial account

Portfolio Investment : the investment in the shares of the company (not more than 10% of any company shares or value of the firm ) or bonds

jeff jeffy answered 1 year ago

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