Answer to Question #319912 in Macroeconomics for KGAO

Question

In March 2016, Barclays Bank announced that it intends reducing its 62.3 % shareholding in Barclays Africa Group Limited (BAGL) in the coming two to three years. It is estimated this transaction is worth $4.1 billion.

a. an outflow of funds, which will be recorded on the current account of the balance of payments.

b. If Barclays sells its share to a South African Bank and then disinvests from South Africa, it will create…

c. an inflow of funds, which will be recorded on the financial account of the balance of payments.

d. an outflow of funds, which will be recorded on the financial account of the balance of payments.

e. an inflow of funds, which will be recorded on the current account of the balance of payments

Answer 1

c.) an inflow of funds, which will be recorded on the financial account of the balance of payments.

e.) an inflow of funds, which will be recorded on the current account of the balance of payments