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Economics (AS & A Level) · Feb / March 2021 · Paper 12 · Question 25

9708Current account of the balance of payments

Which item should be recorded in the financial account of a country's balance of payments?

  1. Aforeign aid by China to assist in infrastructure projects in African countries
  2. Binvestments by Middle Eastern oil producing countries through the purchase of land and property assets in Europe
  3. Cpayments by the USA to other countries which house American military bases
  4. Dprofits and dividends paid by multinational companies based in Indonesia to shareholders in Asia

As printed in the paper

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Correct answer: B. investments by Middle Eastern oil producing countries through the purchase of land and property assets in Europe

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