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?
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. This question tests the candidate's understanding of balance of payments within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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