The balance of payments account that records foreign investment is ______.

current account

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investment account

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capital account

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official settlement account

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Solution

The correct option is D capital account
The balance of payments comprises of the capital account, current account and the official reserve account. The capital account records the value of investments coming into the country from abroad and investments leaving the country as its citizens invest in foreign markets. It manages the amount the county had lent abroad and borrowed from abroad.

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