Economics 9708 · AS & A Level · 6.3

6.3 — practice question

What components make up the current account and the financial account of the balance of payments?

  • Afinancial account: trade in services and transactions in official reserve assets; current account: official reserve assets and trade in goods
  • Bfinancial account: official reserve assets and secondary income; current account: primary income and trade in goods
  • Cfinancial account: foreign direct investment and secondary income; current account: trade in goods and trade in services
  • Dfinancial account: portfolio investment and official reserve assets; current account: trade in services and secondary income

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