What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to current account of the balance of payments. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on current account of the balance of payments, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Calling every import a debit in the goods account: imported services belong in services.
- Treating the trade balance as the current-account balance.
- Putting dividends and interest in trade in services: they are primary income.
- Putting remittances in primary income without checking whether they are transfers.
- Ignoring negative signs in calculations.
- Saying a deficit means the country has “no money”.
- Saying a current-account deficit is the same as government debt.
- Assuming all deficits reduce AD and all surpluses raise welfare.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Current Account of the Balance of Payments revision notes.