PRC-3 · Chapter 20 · Question 28 of 30
When a multinational corporation builds a multi-million dollar manufacturing plant completely from scratch inside Pakistan, this massive transaction is recorded in the Balance of Payments under the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Financial Account
Explanation
Building a factory is a Foreign Direct Investment (FDI), which represents a flow of investment capital and is thus recorded in the Financial Account.
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