Economics 9708 · AS & A Level · 6.3

6.3 — practice question

In which part of the balance of payments account would the following international transaction be entered, if it is matched correctly?

  • Athe outflow of funds from national reserves to foreign residents — balancing item
  • Bthe provision of banking services to foreign companies — financial section
  • Cthe purchase of shares in foreign banks — capital section
  • Dthe receipt of interest on loans to foreign companies — income section

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