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 would be included in the net transfers section of the current account?
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interst payments made by the Australian Government to overseas holders of foreign debt
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payments made by Australian companies to foregin transport firms
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money flowing into Australia from Japan to buy shares in Australian companies
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payments made by the Australian Government for famine releif programs in Africa
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Explanation:
Detailed explanation-1: -The current account of the balance of payment comprises exports and imports of goods, services and unilateral transfers like remittances, gifts, donations, etc.
Detailed explanation-2: -The current account records imports and exports, as well as transfer payments.
Detailed explanation-3: -The current account consists of the visible and invisible imports and exports of the country (such as purchase of goods from abroad and sale of services abroad) as well as unilateral transfers and income receipts and payments (such as worker remittances from abroad).
There is 1 question to complete.