7.2 - Capital Account
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Practice Questions
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What does a capital account record?
💡 Hint: Think about where money flows between countries.
Name one component of the capital account.
💡 Hint: Consider types of investments.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the main purpose of the capital account?
💡 Hint: Focus on financial activities between nations.
A surplus in the capital account indicates which of the following?
💡 Hint: Think about what surplus means in financial terms.
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Challenge Problems
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Evaluate a hypothetical country with a consistent capital account surplus. What economic policies might it adopt to maintain this surplus and ensure sustainable growth?
💡 Hint: Consider how capital policies can help long-term growth.
Analyze a nation facing a capital account deficit. Discuss potential strategies it could employ to reduce dependency on foreign investments.
💡 Hint: Think about how economic self-sufficiency can create a balance.
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