Economics 9708 · AS & A Level · 6.3

6.3 — practice question

A British citizen purchases a house in the US and rents it to American citizens so that he can earn income for himself. On the UK balance of payments, where would the original purchase and then the rent be entered?

  • Ainitial purchase: capital account export; rent: current account import
  • Binitial purchase: capital account import; rent: current account export
  • Cinitial purchase: current account export; rent: capital account import
  • Dinitial purchase: current account import; rent: capital account export

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