Question
The following are the various elements of the UK balance of payments account: (a) Imports of goods (-) (b) Exports of goods (+) (c) Imports
The following are the various elements of the UK balance of payments account:
(a) Imports of goods (-)
(b) Exports of goods (+)
(c) Imports of services (-)
(d) Exports of services (+)
(e) Other income and current outflows (-)
(f) Other income and current inflows (+)
(g) Transfers of capital from the UK (-)
(h) Transfers of capital to the UK (+)
(i) Direct and portfolio UK investment overseas (-)
(j) Direct and portfolio investment in UK (+)
(k) Other (mainly short-term) financial outflows (-)
(l) Other (mainly short-term) financial inflows (+)
(m) Adding to reserves (-)
(n) Drawing on reserves (+)
Into which of the above categories would you put the following?
(i) Video recorders imported from Japan. .............................................................................
(ii) Insurance cover purchased at Lloyds in London by overseas residents. .............................
(iii) UK gives aid to finance capital project in a developing country ........................................
(iv) Japanese car company purchases factory in UK. ...............................................................
(v) UK residents taking holidays in Florida. ...........................................................................
(vi) Interest earned by UK residents on assets abroad. ............................................................
(vii) Running down the stock of foreign exchange in the Bank of England ...............................
(viii) New deposits made in banks in the UK by overseas residents. ..........................................
(ix) Scotch whisky sold in France ...........................................................................................
(x) UK insurance company sets up branch in Canada.
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