PRC-3 · Chapter 20 · Question 12 of 30
Foreign Direct Investment (FDI), such as a massive multinational corporation building a brand new manufacturing plant inside Pakistan, is recorded in which section of the Balance of Payments?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The Financial Account
Explanation
The Financial Account (formerly part of the broader capital account) records international investment flows, including Foreign Direct Investment (FDI) and portfolio investments.
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