Foreign investments in and by a country are referred to as:
Correct answer: C. capital flows
- A. government transactions
- B. the capital account
- C. capital flows
- D. the current account
Explanation
Capital flows are movements of investment money into and out of a country, including foreign direct and portfolio investment. The capital account records such transactions, but the broader term asked for here is capital flows.
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Practise International Political Economy
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