Concept:The balance of payments records all economic transactions between a country and the rest of the world.
Explanation:Foreign investment and long term securities involve movement of capital across borders.
These are financial flows, not payments for goods, services, or trade in visible items.
In the balance of payments, such international investment flows are recorded under the capital account.
This account tracks the net change in ownership of foreign and domestic assets.
Therefore, they are capital account transactions.
Answer:B. capital account transaction