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Economics (AS & A Level) · May / June 2026 · Paper 13 · Question 27

9708Current account of the balance of payments

A family from the United States buys a holiday in Spain. What is the effect of this on the current account of the balance of payments in Spain?

  1. AIt improves the balance of trade in goods.
  2. BIt improves the balance of trade in services.
  3. CIt worsens the balance of trade in goods.
  4. DIt worsens the balance of trade in services.

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Correct answer: B. It improves the balance of trade in services.

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