Question

In: Economics

Which of the following items appear in the current account and which appear in the capital...

Which of the following items appear in the current account and which appear in the capital and financial account?


a. U.S. purchases of assets abroad:
current account/capital and finance account

b. U.S. services imports:
current account/capital and finance account

c. Foreign purchases of assets in the United States:
current account/capital and finance account

d. U.S. goods exports:
current account/capital and finance account

e. U.S. net investment income:
current account/capital and finance account

Solutions

Expert Solution

current account includes all those items that are related to export and import of goods and services as well as investment income. Sale and purchase of assets are a part of capital and financial account.

In this manner, option A and option C are a part of capital account

Option B option D and option E are a part of current account.

Rahul Sunny answered 2 years ago
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