Example of capital flight

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1. Which one of the following is an example of capital flight?

a. the purchase by KLM (the Dutch airline) of partial ownership of Northwest Airlines

b. the flight of Cuban refugees to Florida on small boats

c. the purchase and holding of American real estate by residents of Hong Kong

d. paying more than a 10% premium in the black market

2. Which of the following is not included in the Current Account?

a. dividend payments by foreign subsidiaries to their foreign parent companies

b. exports and imports of services

c. unilateral transfers by governments to governments

d. purchases of short-term money market instruments

Reference no: EM131606145

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