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NEW QUESTION: 1
Which of the following is true?
A. Repatriation of domestic currency to a foreign country by foreign nationals living in the country is treated as part of the Current account.
B. All cash flows associated with foreign investments belong to the capital account.
C. All central bank transactions are excluded from balance of payment accounts.
Answer: A
Explanation:
A is false - Official assets are included in financial account. B is false - Such cash flows belong to the financial account. However, income associated with investment is treated as part of the current account. III is a direct outflow of domestic currency and is treated as a debit entry on the current account.


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