Correct Answer: Domestic investment in foreign assets

Solution : The correct option is d) Domestic investment in foreign assets

A capital outflow refers to the movement of funds or investments from one country to another. It represents the flow of capital from the domestic economy to foreign economies. Domestic investment in foreign assets, such as purchasing foreign stocks, bonds, or real estate, is an example of a capital outflow. This outflow of capital contributes to the balance of payments, which records all transactions between residents and non-residents in a country's economy.