The role of ..... is to direct one nations savings into investments of another nation

ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The role of ____ is to direct one nation’s savings into investments of another nation

A	capital flows
B	services flows
C	current account flows
D	merchandise trade flows

Explanation:

Detailed explanation-1: -Foreign Direct Investment (FDI) flows record the value of cross-border transactions related to direct investment during a given period of time, usually a quarter or a year. Financial flows consist of equity transactions, reinvestment of earnings, and intercompany debt transactions.

Detailed explanation-2: -FDI is not just the inflow of money, but also the inflow of technology, knowledge, skills and expertise/know-how. It is a major source of non-debt financial resources for the economic development of a country. FDI generally takes place in an economy which has the prospect of growth and also a skilled workforce.

Detailed explanation-3: -In economics, hot money is the flow of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts.

There is 1 question to complete.

GENERAL KNOWLEDGE

GK

ACCOUNTING