Correct Answer: International transfers of funds

Solution : The correct answer is (c) International transfers of funds.

The capital account captures capital transfers, which involve the transfer of ownership of non-produced, non-financial assets between residents and non-residents. These transfers can include items such as copyrights, patents, trademarks, and licenses.

International transfers of funds is indeed a component of the capital account. It includes transfers of funds between residents and non-residents, such as remittances, gifts, and foreign aid.