Economics 9708 · AS & A Level · 6.3

6.3 — practice question

A person living in country X purchases shares in a company in country Y. Those shares later pay that person a dividend. In country X’s balance of payments, where are these two transactions recorded?

  • Apurchase: capital account; dividend: primary income (income)
  • Bpurchase: capital account; dividend: secondary income (current transfers)
  • Cpurchase: financial account; dividend: primary income (income)
  • Dpurchase: financial account; dividend: secondary income (current transfers)

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