Practice Test 8

Based on the balance of payments information shown for Country B (values in billions of dollars), which transaction should be recorded as a financial account credit (inflow)?

Transactions:

• Domestic consumers buy $35 of imported electronics
• A domestic firm earns $12 in dividends from its factory abroad
• Foreign investors buy $50 of domestic government bonds
• Domestic investors buy $20 of foreign stocks

Based on the balance of payments information shown for Country D (values in billions of dollars), what is the current account balance?

Transactions for Country D:

• Exports of goods and services: $180
• Imports of goods and services: $210
• Income receipts from abroad: $25
• Income payments to abroad: $5
• Foreign investors purchase Country D government bonds: $30
• Country D residents purchase foreign real estate: $20