Which of the following is not included in the financial account?
A)an increase in private Australian asset holdings in foreign countries
B)an increase in foreign government asset holdings in foreign countries
C)an increase in foreign private asset holdings in Australia
D)income received from investments made overseas

Question

Quizplus · Accepted Answer

The financial account includes transactions that involve financial assets and liabilities between residents and non-residents. It covers increases in asset holdings abroad (A) and increases in foreign asset holdings within a country (C). However, income received from investments made overseas (D) is recorded in the current account, specifically in the primary income component, not in the financial account. Option B is incorrect because it refers to foreign government asset holdings in foreign countries, which does not directly involve the country in question's financial account.

Which of the Following Is Not Included in the Financial