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JAMB Commerce 1999 Question 27

Question 27

Foreign Trade

I. Foreign investment II. Long-term lending III. Short-term lending IV. Foreign exchange reserve V. Short-term borrowing. Which combination of the above include capital account in international trade?

  1. A.I, III and IV
  2. B.II, III and IV
  3. C.II and V
  4. D.I and II.
Show the answer and explanation

Answer: D (I and II.)

Explanation

The capital account records long-term capital flows such as foreign investment and long-term lending.