Question 26
MediumOriginal questionA country's international transactions in a year:
| Item | $ billion |
|---|---|
| Exports of goods | 300 |
| Imports of goods | 450 |
| Exports of services | 200 |
| Imports of services | 100 |
| Net income from abroad | −20 |
| Net transfers (remittances, gifts) | 30 |
| Net foreign direct investment | 60 |
| Net portfolio investment | 40 |
| Net external borrowing | 30 |
What is the capital account balance?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Capital account = FDI + portfolio + borrowing = 60 + 40 + 30 = $130 billion.
- Concept
- Capital account balance
- Typical timeTypical
- 70 s
- Your timeYours
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