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QUESTION IMAGE

7 the ___ is made up of business investment, purchases and sales of sto…

Question

7 the ___ is made up of business investment, purchases and sales of stocks and bonds, and short term banking transactions that represent flows into and out of a nation
international monetary balance
balance of trade
capital account
current account

Explanation:

Brief Explanations
  • The international monetary balance is a broad concept but not specifically defined as in the question.
  • The balance of trade focuses on the difference between exports and imports of goods.
  • The capital account records business investment, stock/bond transactions, and short - term banking transactions (capital flows).
  • The current account deals with trade in goods and services, income, and current transfers.

Answer:

capital account