2010 hsc q3 (1 Viewer)

[Magical Kebab]

http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2010exams/pdf_doc/2010-hsc-exam-economics.pdf

Answer is B
Not sure why

 

[Salehhh]

The Current Account + Capital & Financial Account = 0 (They must add up to ZERO under Australia's floating exchange rate system)

So, Calculate the Current Account, which equals to "-140"

Therefore, the Capital & Financial Acc. must add up to 140 in order for it to equal to ZERO..

And that's why the answer is "B".

 

[Magical Kebab]

Did u include net current transfers as part of the cad?

That's what I don't get, I thought net current transfers was part of the capital account.

 

[Salehhh]

Yeh the net current transfers is a part of CAD... But now they have changed net current transfers to Net Secondary Income and Net income to Net Primary Income.