A US company receives a US\$20 million dividend from shares that it owns in a Brazilian company. How would this dividend be shown in the balance of payments of the United States?

A.
a credit in the capital account
B.
a credit in the current account
C.
a debit in the capital account
D.
a debit in the current account
Economics
IGCSE&ALevel
CAIE
Exam No:9708_w24_qp_32 Year:2024 Question No:26

Answer:

B

Knowledge points:

11.1.1 components of the balance of payments accounts: current account, financial account and capital account
11.1.2 effect of fiscal, monetary, supply-side, protectionist and exchange rate policies on the balance of payments

Solution:

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