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CAIE A-Level Economics A2 11.1.1 Balance of Payments Accounts Questions

Practise assigning trade, income and transfers to the current account and direct, portfolio or reserve-asset transactions to the financial account.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Classify current, capital and financial account entries in the balance of payments and identify how deficits are financed.

CAIE A-Level Economics A2 11.1.1 Balance of Payments Accounts Questions question 1

[Maximum number: 1]

All else remaining unchanged, what would result in an outflow of capital funds from a country?

A

a fall in the country's rate of inflation

B

an expected appreciation of the country's exchange rate

C

an increase in foreign interest rates

D

an increase in foreign prices

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