ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A debit in Gatorland’s current account; a credit in Hamsterville current account.
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A debit in Gatorland’s financial account; a credit in Hamsterville’s financial account.
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A credit in Gatorland ‘s financial account; a debit in Hamsterville financial account.
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A debit in Gatorland’s current account; a credit in Hamsterville current account.
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No impact on Gatorland’s balance of payments; a credit in Hamsterville current account.
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Detailed explanation-1: -The current account includes foreign transactions that are not associated with a future financial obligation, such as imports and exports. Therefore, when net exports increase, the current account balance increases.
Detailed explanation-2: -Answer and Explanation: The answer is c). The two accounts in the balance of payment system are the current account and capital account.
Detailed explanation-3: -What change will occur in the balance of payments accounts in Wakanda when it sells bonds to Hamsterville? Financial capital inflows increase When Wakanda sells a bond to another country, money comes into the country to pay for the bond, and the bond itself exits the country.
Detailed explanation-4: -Statement 3 is correct: The Balance of Payments (BoP) includes both the current account and capital account, in the capital account there is the nation’s imports and exports of capital and foreign aid.