Question

The capital account records Question 2 options:

a. the current value of the balance of payments in U.S. dollars.

b. all the purchases and sales of capital goods in the United States.

c. transactions involving foreign investment in the United States and U.S.

d. investment abroad.

e. transactions involving trade, interest payments, and net transfers.

f. imports and exports of capital goods.

Answer 1

c. transactions involving foreign investment in the United States and U.S investment abroad.

Step-by-step explanation:

The capital account provides the record of foreign investment transactions occurring between a country and another country. It gives an idea of money coming in and out of the state. A surplus in the capital account record is indicative of the inflow of money in the country, while a deficit indicates the loss of money.

Debt accrued by a country, banking, loans and investment are all reflected in the capital account record. So, for a person to determine a nations assets and liabilities, the capital account would provide an accurate insight to that information.