A Level Economics (9708)•9708/11/M/J/24
Explanation
Secondary Income Balance Calculation
Steps:
- Identify secondary income components in the current account table (e.g., transfers, remittances).
- Sum inflows (credits) for secondary income.
- Sum outflows (debits) for secondary income.
- Subtract total debits from total credits; negative result indicates deficit.
Why A is correct:
- Secondary income balance is credits minus debits per IMF balance of payments manual; table shows X+240m debits, yielding -$240m deficit.
Why the others are wrong:
- B miscalculates by ignoring a $10m transfer inflow.
- C inverts sign, treating deficit as surplus.
- D repeats C's error with wrong magnitude.
Not enough information: Table data omitted, preventing precise verification.
Final answer: A
Topic: Current account of the balance of payments
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