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.

Question

Quizplus · Accepted Answer

Depositing money in a foreign bank is considered a financial account transaction, not a current account transaction. The current account includes trade in goods and services, income receipts, and one-way transfers, not changes in financial assets and liabilities.

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