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Which of the following sections of the balance-of-payments statement is a record of the direct investment, portfolio investment, and short-term movement of cash and technology to and from countries?

A. Current Account
B. Capital Account
C. Financial Account
D. Trade Account

1 Answer

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Final answer:

The Financial Account is the section of the balance-of-payments statement that records direct investment, portfolio investment, and short-term movement of cash and technology between countries.

Step-by-step explanation:

The section of the balance-of-payments statement that is a record of the direct investment, portfolio investment, and short-term movement of cash and technology to and from countries is the Financial Account.

The Financial Account includes transactions related to cross-border investment in assets such as stocks, bonds, and real estate. It tracks the movement of funds between countries, including foreign direct investment (FDI), portfolio investment, and other financial flows.

For example, if a company from one country invests in a manufacturing plant in another country, that would be recorded in the Financial Account as a direct investment.

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