Which of the following is considered a capital transfer

in the capital account of the BOP?

A Sale of a company to foreign investors. Correct Answer Incorrect Answer

B Remittances sent by immigrants to their home country. Correct Answer Incorrect Answer

C Gifts between governments Correct Answer Incorrect Answer

D Purchases of foreign bonds Correct Answer Incorrect Answer

E Tourists spending money abroad. Correct Answer Incorrect Answer

Solution

In the capital account of the BOP, capital transfers include transactions like the sale of a company to foreign investors. This account records all international transactions of assets and liabilities.

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