Answer to Question #275167 in Macroeconomics for Mufasa

Question

Indicate under which item of the current account each of the following transactions is

recorded and whether it will increase or decrease the balance on the current account.

a. Capeson, a Chadilien exporting company, exports fruit to the Middle East. (2 Marks)

b. Jones and Kelly, a Chadilien engineering firm, hires German engineers to help with

the construction of new stadiums. (2 Marks)

c. You receive a dividend (a part of the profit) because you own some shares in Amazon

which is based in the US. (2 Marks)

COECB1-B44 – Take-Home Assessment Paper Block 4 2021 | V1.0 Page 5 of 7

d. You inherit some money from your deceased aunt who lived in London

Answer 1

a) will be recorded in the credits account, and it will lead to an increase on the balance of that account.

b)will be recorded in the debits account, consequently a decrease in the balance.

c)will be recorded in the credits account, and will cause an increase in the balance of that account.

d)will be recorded in the credits account, and the balance of that account will increase