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Question : The ____ balance is equal to capital flows from the rest of the world minus capital flows to the rest of the world.

Option 1: current account

Option 2: saving account

Option 3: capital account

Option 4: asset account


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: capital account


Solution : The correct answer is capital account .

The capital account tracks capital transfers between countries, including loans, investments, and other financial activities. A capital account surplus occurs when capital flows into a nation exceed capital flows out of the country, and a capital account deficit occurs when the opposite happens.

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