Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

Which of the following statements about the components of the balance of payments is correct?

  • AThe current account consists of transactions in goods, services, investment income and remittances between countries.
  • BThe current account consists of transactions in goods, services, and portfolio investment between countries.
  • CThe financial account consists of transactions in financial assets, investment income and remittances between countries.
  • DThe financial account consists of transactions in fixed assets, investment income and the balancing item between countries.

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