ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not found in the capital account in Australia’s balance of payments?
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purchases of Australian firms by US firms
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investment by overseas firms in Austrlian mining companies
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Australian Government borrowings from aborad
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interest and dividends paid to overseas companies and individuals
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Explanation:
Detailed explanation-1: -Government Loans to Foreign Governments.
Detailed explanation-2: -What is the capital account in the Balance of Payments Statistics (BOPS)? The capital account shows credit and debit entries for nonproduced nonfinancial assets and capital transfers between residents and nonresidents.
Detailed explanation-3: -Answers. Bonus shares to equity shareholders does not involve provision of new resources and no transaction is recorded.
Detailed explanation-4: -It is calculated by subtracting the value of the goods and services Australia buys from overseas from the value of the goods and services we sell to other countries. As of December 2022, Australia’s trade balance was $12, 237 million (seasonally adjusted).
There is 1 question to complete.