The capital account records international capital transactions related to investments in which assets?

• A. Customer deposits
• B. Investments in business, real estate, bonds and stocks
• C. Currency exchange rates
• D. Trade credits

Answer: (B)

In the balance of payments, the capital account captures cross‑border investments in real and financial assets, such as investing in a foreign business, buying real estate overseas, or purchasing foreign bonds and stocks. These flows represent ownership claims or stakes in assets and are distinct from everyday payments or credits tied to trade.

That’s why investments in business, real estate, bonds, and stocks are the right fit: they are about acquiring financial or real assets across borders, not about banking deposits, currency price movements, or trade financing. The other options involve activities that are typically classified under other parts of the accounts—customer deposits are banking liabilities, currency exchange rate movements reflect valuation changes rather than asset purchases, and trade credits relate to trade financing and are part of the current account.