A-LevelEconomicsInternational economic issues9708/12 · May/June 2019 · Q261 Mark

A British citizen buys a house in the US which he rents to American citizens in order to receive an income for himself. Where will the initial purchase and then the rent be recorded on the UK balance of payments?

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Ainitial purchase: capital account export, rent: current account import

Binitial purchase: capital account import, rent: current account export

Cinitial purchase: current account export, rent: capital account import

Dinitial purchase: current account import, rent: capital account export

✓ Correct answer

B: initial purchase: capital account import, rent: current account export

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2019 Paper 1 Variant 2, question 26.

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