WorksheetsBalance of Payments Current Account
Total questions: 16
Worksheet time: 12mins
How is the purchase of imported cars recorded in Australia's BoP?
As a goods credit in the current account
As a goods credit in the income account
As a goods credit in the capital account
As a goods debit in the current account
How is the payment of interest on foreign loans recorded in Australia's BoP?
As a primary income debit in the current account
As a service debit in the current account
As a foreign investment debit in the financial account
As a secondary income credit in the current account
Development aid is different from emergency relief in that
it is responsive to natural disasters
its aim is to build the productive capacity of the recipient
it is impossible to plan in advance.
Which of the following structural factors would reduce a trade deficit?
An appreciation of the exchange rate
An increase in multifactor productivity growth
Additional regualtion of the business sector
An increase in the company tax rate.
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.
The emergence of a surplus in the financial account would tend to
reduce the net income deficit in the current account
increase the net income deficit in the current account
have no effect on the net income outcome.
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.
