Consider three definitions for a country's current account surplus. Which are correct? (i) equal to its trade balance plus net income from abroad; (ii) equal to its trade balance plus foreign direct investment; (iii) equal to the change in its claims against the rest of the world.
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Balance of payments and exchange rates has come up 120 times in 7 exams since 2007.
This question is on Balance of payments accounts and the current account, part of Balance of payments and exchange rates in International Economics.
How a country's transactions with the world are recorded.
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Question from the DSE 2009 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.