Answer to Question #123687 in Macroeconomics for Judith

Question

Which one of the following statements is correct?
A. Exports represent a leakage from the expenditure flow.
B. Foreign loans are made directly by the government and are not part of the BoP.
C. When South Africans buy or sell shares on the New York stock exchange it is accounted for in the BoP.
D. If the exchange rate changes from $0.11 = R1, to $0.12 = R1, the rand depreciated.

Answer 1

The correct answer is C

C. When South Africans buy or sell shares on the New York stock exchange it is accounted for in the BoP.