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A-LevelEconomicsInternational Trade and Exchange RatesFeb/Mar 2021Paper 1 Q251 Mark

Which item should be recorded in the financial account of a country's balance of payments?

Aforeign aid by China to assist in infrastructure projects in African countries
Binvestments by Middle Eastern oil producing countries through the purchase of land and property assets in Europe
Cpayments by the USA to other countries which house American military bases
Dprofits and dividends paid by multinational companies based in Indonesia to shareholders in Asia

✓ Correct Answer

The correct answer is B. This question tests the candidate's understanding of international trade and exchange rates 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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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Feb/Mar 2021 examination, Paper 1 Variant 2. It tests the topic of International Trade and Exchange Rates and is worth 1 mark.

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