Which item is recorded primarily in the financial account of a country's balance of payments?
Correct answer: C. Purchase of foreign shares by residents
- A. Exports of manufactured goods
- B. Workers' remittances received
- C. Purchase of foreign shares by residents
- D. Payments for imported fuel
Explanation
The financial account records transactions involving financial assets and liabilities, such as residents purchasing foreign shares. Goods trade, remittances, and fuel payments are generally recorded in the current account.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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