PRC-3 · Chapter 20 · Question 24 of 30
Which of the following items is strictly EXCLUDED from the 'Current Account' of a nation's Balance of Payments?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The inflow of massive capital investment (FDI) by foreign multinational companies
Explanation
Foreign Direct Investment (FDI) is an investment flow and is recorded in the Financial Account, not the Current Account (which handles goods, services, and transfers).
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