Question

Which of the following is a component of a capital account?

Options

• Loans

• Foreign investments

• Change in Foreign Exchange Reserves

• All of these

Answer 1

All of these

Explanation:

A capital account is an account that records all transactions between citizens of a country and the rest of the world that result in a change in the residents' or government's asset or liability status. Loans, foreign investments, and changes in foreign exchange reserves are the three primary components of a capital account.