A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2019 · Q251 Mark

A foreign government pays a UK university to educate its students. How would this be recorded on the balance of payments current account of the UK?

Acurrent account component: secondary income, money flows: inflow

Bcurrent account component: secondary income, money flows: outflow

Ccurrent account component: trade in services, money flows: inflow

Dcurrent account component: trade in services, money flows: outflow

✓ Correct answer

C: current account component: trade in services, money flows: inflow

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2019 Paper 1 Variant 2, question 25.

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