A-LevelEconomicsInternational Trade and FinanceMay/June 2019Paper 1 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?
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
The correct answer is B. This question tests the candidate's understanding of international trade and finance 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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