Balance of Payments DCO 2020

This account records flows of money from the purchase and sale of real estate and financial assets between countries.

• current account

• financial/capital account

• official reserves

• net transfers

This account records a nation's imports and exports of goods, services, net investment income, and net transfers.

• current account

• financial/capital account

• official reserves

• balance of trade

Gerry Francis, a UK citizen, buys stock in a Japanese video game company. This transaction would be recorded as

• a credit to the UK capital/financial account

• a debit to the UK capital/financial account

• a credit to the UK current account

• a debit tot he UK current account

Transfers of 'hot money' appear in the capital and fiancial account.

• True

• False

An Italian tourist paying for a night in a London hotel would appear on the UK balance of payments as:

• In the current account as a credit

• In the capital/financial accounts as a credit

• In the capital/financial accounts as a debit

• n the current account as a debit

The acquisition of a UK football club by a rich foreign investor would count as

• A debit on the capital and financial account

• A credit on the current account

• A debit on the current account

• A credit on the capital and financial account

Profits from a UK football club, paid back to a wealthy foreign owner, would count as:

• A credit as foreign direct investment on the capital/financial account

• An outflow investment incomes on the current account

• Import expenditure on the balance of trade of services

• Current transfers

Phil Parkes, a UK citizen, buys a villa in France. This would be registered in the UK BoP as:

• The Balance of Trade in Goods as a credit

• The Balance of Trade in Services as a debit

• The Capital/Financial Account as a debit

• Investment incomes as a debit

Each month, Jan Tomaszewski, who recently arrived in the UK, sends half his paycheck to his sister in Poland. This would appear in the UK BoP as:

• Current account - credit

• Capital/Financial account - debit

• Current account - debit

• Capital/Financial account - debit

Bob Hazel, an UK entrepreneur, invests £50 million to develop a theme park in Malaysia. Where would this appear in the UK BoP

• Current account as a debit

• Capital/Financial account as a debit

• Capital/Financial account as a credit

• current account as a credit