Balance of Payments Accounts Practice Test

Based on the balance of payments information shown for Country H (values in billions of dollars), which transaction would be recorded as a current account credit?

Transactions for Country H:

• Domestic consumers buy imported clothing: $18
• Foreign tourists purchase domestic hotel services: $12
• Domestic investors buy foreign government bonds: $9
• Foreign investors purchase domestic factories: $20

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