When discussing the private capital account, asset flows include ...

[tuffie]

When discussing the private capital account, asset flows include all but which one of the following?
 
  A) capital expenditures by domestic firms
  B) foreign securities purchased by domestic citizens
  C) changes in the balances of a bank's cash deposit from foreign transactions
  D) an investment in a foreign subsidiary by a domestic firm

Question 2

In what way(s) do the development paths chosen by Pakistan and Bangladesh differ? What are the main factors that have contributed to these differing paths?
 
  What will be an ideal response?

[nyrave]

Answer to Question 1

A

Answer to Question 2

The key differences are the aspects of economic development discussed in the chapter. The case study at the end of the chapter provides comparative figures for the two countries and the main factors contributing to the divergent paths.