Hellllppppp (1 Viewer)

Munti

92.25 ATAR! hmu for tutoring :) im cheap
Joined
Jun 6, 2017
Messages
73
Gender
Female
HSC
2019
q 17.png
Someone please explain to me how the answer to this multiple choice question is A? Because I thought it was D! :spzz:

I am utterly confused. pls help.:spzz:
 
Last edited:

BMWM2

Member
Joined
Jan 21, 2018
Messages
32
Gender
Male
HSC
2019
Hi Munti,

what paper and year is this from? Some of the old papers have different terminology and in this case, the capital account may also be recognised as the capital and financial account - this is just an idea

I don't believe it can be A: the capital account alone is very small and is used to measure conditional aid, capital transfers from migrants etc and non produced, non financial assets
 

Munti

92.25 ATAR! hmu for tutoring :) im cheap
Joined
Jun 6, 2017
Messages
73
Gender
Female
HSC
2019
Hi Munti,

what paper and year is this from? Some of the old papers have different terminology and in this case, the capital account may also be recognised as the capital and financial account - this is just an idea

I don't believe it can be A: the capital account alone is very small and is used to measure conditional aid, capital transfers from migrants etc and non produced, non financial assets
Yeah you're most probably right on that theory. It's from 1996 if I recall correctly. Would you agree that it's D?

thanks :)
 

BMWM2

Member
Joined
Jan 21, 2018
Messages
32
Gender
Male
HSC
2019
Yeah you're most probably right on that theory. It's from 1996 if I recall correctly. Would you agree that it's D?

thanks :)
yeah, this would be my choice - these inflows of capital/investment must be serviced through repatriation of dividends back overseas, thus a debit on the current account
 

Munti

92.25 ATAR! hmu for tutoring :) im cheap
Joined
Jun 6, 2017
Messages
73
Gender
Female
HSC
2019
yeah, this would be my choice - these inflows of capital/investment must be serviced through repatriation of dividends back overseas, thus a debit on the current account
Agreed. Thanks!!
 

KingTings

Member
Joined
Nov 29, 2017
Messages
87
Location
Sydney, NSW
Gender
Male
HSC
2019
This is a strange question. Foreign investment in companies classifies a credit in the financial account and as a debit in the current account (via net primary income), since dividends goes overseas to Japan with funds coming domestically from Japan.
The capital account refers to the trade in intellectual property and most non-financial assets, so it wouldn't even be recorded there.
It should be D as previously stated.
 

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top