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A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2021 · 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

B: investments by Middle Eastern oil producing countries through the purchase of land and property assets in Europe

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Topic
International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2021 Paper 1 Variant 2, question 25.

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