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A-LevelEconomicsInternational economic issues9708/12 · May/June 2020 · Q211 Mark

Which components are included in the financial account of the balance of payments? the balancing item | foreign direct investment | interest, profits and dividends | key ---|---|---|--- A ✓ | ✓ | X | ✓ = included B ✓ | X | X | X = not included C X | ✓ | ✓ | D X | X | X |

Athe balancing item: included, foreign direct investment: included, interest, profits and dividends: not included
Bthe balancing item: included, foreign direct investment: not included, interest, profits and dividends: not included
Cthe balancing item: not included, foreign direct investment: included, interest, profits and dividends: included
Dthe balancing item: not included, foreign direct investment: not included, interest, profits and dividends: not included

✓ Correct answer

A: the balancing item: included, foreign direct investment: included, interest, profits and dividends: not included

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About this question

Topic
International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2020 Paper 1 Variant 2, question 21.

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