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A-LevelEconomicsInternational Trade and FinanceFeb/Mar 2020Paper 1 Q251 Mark

In 2018 an investor in the United States (US) purchased shares in a German bank. In December 2018 the US investor was paid a dividend on these shares. How were these activities recorded in the US balance of payments for 2018?

Acapital account credit, current account credit
Bcapital account credit, current account debit
Ccapital account debit, current account credit
Dcapital account debit, current account debit

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of international trade and finance within the Economicssyllabus. The examiner's mark scheme requires...

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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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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Feb/Mar 2020 examination, Paper 1 Variant 2. It tests the topic of International Trade and Finance and is worth 1 mark.

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