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WAEC Economics 2003 Question 40

Question 40

Balance of Payments and Exchange Rates

Which of the following is part of the capital account of the balance of payments?

  1. A.Net investment from abroad
  2. B.Import of machinery
  3. C.Insurance
  4. D.Transportation costs.
Show the answer and explanation

Answer: A (Net investment from abroad)

Explanation

Investment flows are capital movements; machinery imports, insurance and transport are current account items.