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ExtremeBDS [4]
4 years ago
10

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks​

Business
1 answer:
Tatiana [17]4 years ago
7 0
<h2>The following are the reasons for how a country could have a deficit on its primary income but a current account surplus:</h2>

  • The identified and associated sources of primary income would be different than the sources of financial activities that reflect their collection in the current account.
  • The expenses on developmental activities could be drawn from the primary account rather than drawing them directly from the current account.
  • There could be diversions of funds to manage the accounts in order to earn interest on them.
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