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Which of the following transactions involves official capital flow in the balance of payment account?

Economics

ScanSolve AI Answer

Answer

D

QUESTION 6
Which of the following transaction involves official capital flow in the balance of payment account?
The correct option is D.

  • Official capital flows typically involve government transactions related to assets and liabilities, or changes in foreign exchange reserves. However, in a broader sense, large-scale foreign direct investments (FDI) in national projects, while primarily private, often involve significant government approval and policy, making them a crucial part of a nation's capital account. Among the given options, investment by Exxon Mobil in the PNG LNG project is a foreign direct investment, which is a capital account transaction. The other options are either current account transactions or domestic transactions. $\boxed{\text{D. Investment by Exxon Mobil in the newly found PNG_
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