Economics 9708 · AS & A Level · 6.3

6.3 — practice question

An Indian multinational company earns profits from factories located in the UK. It then acquires a UK-based firm that is owned by a US company. How will these transactions be shown in India’s balance of payments?

  • Aa credit item in the current account; a debit item in the financial account
  • Ba credit item in the financial account; a debit item in the current account
  • Ca debit item in the current account; a credit item in the financial account
  • Da debit item in the financial account; a credit item in the current account

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