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?

Q: What topic does this question test?

This question tests International Trade and Finance in A-Level Economics (syllabus code 9708). It is worth 1 mark.

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: capital account debit, current account credit

📋 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 International Trade and Finance in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2020 examination, Paper 1 Variant 2.

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