Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment

Monjur Alahi

Which of the following constitute Capital Account? 

1. Foreign Loans 

2. Foreign Direct Investment 

3. Private Remittances 

4. Portfolio Investment 

Select the correct answer using the codes given 

below. 

(a) 1, 2 and 3 (b) 1, 2 and 4 (c) 2, 3 and 4 (d) 1, 3 and 4


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Salim Ahmed Kawsar

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(b) Capital Account comprises of Foreign loans, Foreign Direct Investment and Portfolio Investment. Capital Account is the net result of public and private international investments flowing in and out of a country. Portfolio investment is the buying of shares and bonds. FDI is the investments by foreigners in a country or the citizens investing in foreign countries.

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