Which of the Following Transactions Would Not Be Included in the Current

question 113

Multiple Choice

Which of the following transactions would not be included in the current account of the home country?

• A)A consumer good is imported into the home country.
• B)A home country resident makes a deposit in a foreign bank.
• C)A foreign student pays tuition to a university in the home country.
• D)A home country resident receives income on his or her foreign assets.

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Definitions:

Polluters

Entities that emit harmful substances into the environment, contributing to pollution.

Government Regulation

Rules and laws established by governmental bodies designed to control and govern the conduct of individuals, businesses, and other organizations within a society.

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services. At this point, it is not possible to improve the welfare of one individual without impairing another individual's welfare.