A-LevelEconomicsBalance of PaymentsOct/Nov 2014Paper 1 Q221 Mark

Which international transaction is correctly matched to the part of the balance of payments account in which it is recorded?

Q: What topic does this question test?

This question tests Balance of Payments in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Athe outflow of funds from national reserves to foreign residents | balancing item

Bthe provision of banking services to foreign companies | financial section

Cthe purchase of shares in foreign banks | capital section

Dthe receipt of interest on loans to foreign companies | income section

✓ Correct Answer

The correct answer is D: the receipt of interest on loans to foreign companies | income section

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Balance of Payments in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2014 examination, Paper 1 Variant 2.

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