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      Question

      Which of the following is considered a capital transfer

      in the capital account of the BOP?
      A Sale of a company to foreign investors. Correct Answer Incorrect Answer
      B Remittances sent by immigrants to their home country. Correct Answer Incorrect Answer
      C Gifts between governments Correct Answer Incorrect Answer
      D Purchases of foreign bonds Correct Answer Incorrect Answer
      E Tourists spending money abroad. Correct Answer Incorrect Answer

      Solution

      Β Β  In the capital account of the BOP, capital transfers include transactions like the sale of a company to foreign investors. This account records all international transactions of assets and liabilities.

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