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- Subject
- The Balance of Paymentseconomics-mcqs › the-balance-of-payments
- Published
- 27 May 2019
- Last updated
- 28 May 2026
How are direct investments and the acquisition of securities categorized in international finance?
Multiple choice question for The Balance of Payments. Select an option, then review the explanation below.
Explanation
Direct investments and security purchases fall under capital account transactions, which involve cross-border investments and financial asset exchanges, unlike current account transactions that cover trade in goods and services.
More The Balance of Payments MCQs
Practice related questions from the same subject.
- 1.Which of the following statements about the balance of payments is accurate?
- 2.What term describes the difference between a nation's exports and imports of goods?
- 3.What is required to reconcile discrepancies in the balance of payments accounts?
- 4.What does the balance of trade specifically measure?
- 5.Which economic pattern is commonly observed in countries during the initial phases of rapid economic growth?