Balance of Payments

The Australian govt spent $19m on the construction of the Thai-Laos Friendship bridge across the Mekong River. This payment was recorded in the Balance of Payments as

• a debit in secondary income

• a debit in the Financial account

• a capital transfer debit

As part of its foreign aid programme the Australian government lent $45m to the govt of PNG at low interest rates. How is this loan recorded in Australia's balance of payments?

• a capital transfer credit in the Capital Account

• a debit in the Financial Account

• a primary income debit in the Current Account

• a capital transfer debit in the Capital Account

An Australian firm repays a loan to a German bank. How is this payment recorded in the Balance of Payments?

• A credit in the financial account.

• A primary income debit in the current account.

• A debit in the financial account.

• A primary income credit in the financial account.

When exports > imports....

• current account surplus

• current account deficit

Australia's trade balance is

• always a deficit

• always a surplus

• the cyclical component of the CAD

• a national disgrace

The switch to trade and current account deficits in recent years has resulted in

• a larger net income deficit.

• a financial account surplus.

• a smaller net income deficit

• no change to the financial account outcome because they are separate entities.

Which of the following is likely to see a rise in Australia's trade surplus?

• A reduction in overseas economic growth.

• A rise in global economic growth

• A rise in economic growth in Australia's major trading partners.

• A fall in economic growth in Australia's major trading partners.

If the Uk has a current account deficit with Germany, what is Germany's current account status?

• surplus

• deficit

• none of the above

If the Uk has a current account surplus with Spain, what is Spain's current account status?

• deficit

• surplus

• none of the above

Tourism, transport & logistics are included in?

• Trade Balance in Goods

• Trade Balance in Services

• Net Primary Income from Overseas Assets

• Net Secondary Income