Correct Answer: Making a foreign direct investment

Solution : The correct answer is c) Making a foreign direct investment

Making a foreign direct investment (FDI) is a capital account transaction. The capital account of the Balance of Payments (BoP) records transactions related to the acquisition and disposal of financial assets and liabilities between residents and non-residents. Foreign direct investment refers to the investment made by residents of one country in physical assets, such as factories or businesses, in another country.