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2.6 The international economy (A-level only)

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Question 43

An economy conducts the following transactions with the rest of the world over the course of a fiscal year:

  1. A domestic firm receives dividend payments from its equity investments in foreign companies.
  2. A domestic pension fund purchases newly issued long-term corporate bonds from a foreign conglomerate.
  3. A domestic citizen sends monthly monetary remittances to relatives residing overseas.
  4. The domestic government forgives a sovereign debt previously owed by a developing nation.

Which of these transactions are recorded in the current account of the balance of payments?

A

1, 2 and 3 only

B

1 and 3 only

C

2 and 4 only

D

1, 3 and 4 only

Markscheme

2.6 The international economy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.6 The international economy (A-level only)

310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.

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