A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2020 · 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

C: capital account debit, current account credit

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2020 Paper 1 Variant 2, question 25.

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