Question 21N.3.HL.TZ0.b
| Date | November 2021 | Marks available | [Maximum mark: 1] | Reference code | 21N.3.HL.TZ0.b |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | State | Question number | b | Adapted from | N/A |
Table 5 shows selected items of the balance of payments for Laylaland in 2020. Figures are in millions of US dollars (US$).
Table 5
State one example of a debit item from the financial account of the balance of payments.
[1]
Correct examples include:
- (net) outward portfolio investment
- (net) outward FDI
- increase in forex reserves
- (net) outflow of “hot money”.
OR examples of any of the above, such as:
Domestic residents purchasing foreign bonds / setting up a new company abroad or acquiring controlling percentage of shares of a foreign company / the central bank buying foreign currency / domestic residents buying foreign currency.
For any correct example award [1].
Many students did not know the items in the financial account of the balance of payments and instead stated a current account item. Others failed to show that FDI needed to be qualified as being “overseas” to be a debit item.
