CIMA BA1 · Chapter 3 · Question 4 of 10
Which of the following transactions is recorded in the current account of a country's balance of payments?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Dividends received by domestic companies from their overseas subsidiaries
Explanation
The current account records trade in goods and services, primary income (such as dividends, interest and wages) and secondary income (transfers). Purchasing overseas assets and borrowing from abroad are recorded in the financial account, as are changes in official reserves.
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