Question

Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.

Answer 1

The payments on foreign investment and the government transfers counted on the negative side of the current account balance for the United Kingdom in 2001.

Step-by-step explanation:

A national records the nation's transactions with the rest of the world on exporting, importing, foreign incomes and current transfers, over a defined period of time. The country's current account balance can be positive as a surplus or negative as a deficit. Typically, the payments on foreign investments and the government transfers like foreign aids are rated as negative because they are monies transferred out of the country in a particular period of a time.