Which of the following transactions would be included in the…

JAMB Commerce 2023 317 views
Source: JAMB · 2023

Which of the following transactions would be included in the current account of the balance of payments?

  1. A foreign direct investment in a local company.
  2. A loan taken from a foreign bank.
  3. The purchase of goods from abroad. ✓
  4. The sale of a domestic asset to a foreign investor.
Explanation

The current account records trade in goods and services, plus income and transfers. Buying goods from abroad is an import, so it belongs here.

Foreign investment, foreign loans and sale of assets belong to the capital and financial account.

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