Change in Net Secondary Income

Steps:

• Locate net secondary income value for year 1 in the table (e.g., -$5m outflow).
• Locate net secondary income value for year 2 in the table (e.g., +$5m inflow).
• Subtract year 1 value from year 2 value: $5m - (-$5m) = +$10m.
• Positive difference shows an increase of $10m.

Why C is correct:

• Net secondary income change is year 2 minus year 1 per balance of payments accounting, yielding +$10m increase.

Why the others are wrong:

• A: Assumes decrease of $10m, but calculation shows increase.
• B: Assumes decrease of $20m, opposite direction and wrong magnitude.
• D: Assumes increase of $30m, exceeds actual$10m difference.

Final answer: C