Macroeconomic Influences on NZ Economy

Question 1

The _______________ are accounts that set out the financial transactions that one country has with other countries. There are three main sections:
• The Current Account;
• The Capital Account;
• The Financial Account.

Answer 1

balance of payment accounts

Question 2

The balance of payment accounts are accounts that set out the _____________________________. There are three main sections:
• The Current Account;
• The Capital Account;
• The Financial Account.

Answer 2

financial transactions that one country has with other countries

Question 3

The balance of payment accounts are accounts that set out the _______________ that one country has with other countries. There are three main sections:
• The Current Account;
• The Capital Account;
• The Financial Account.

Answer 3

financial transactions

Question 4

The balance of payment accounts are accounts that set out the financial transactions that ___________________. There are three main sections:
• The Current Account;
• The Capital Account;
• The Financial Account.

Answer 4

one country has with other countries

Question 5

The balance of payment accounts are accounts that set out the financial transactions that one country has with other countries. There are three main sections:
• __________________;
• The Capital Account;
• The Financial Account.

Answer 5

The Current Account

Question 6

The balance of payment accounts are accounts that set out the financial transactions that one country has with other countries. There are three main sections:
• The Current Account;
• _________________;
• The Financial Account.

Answer 6

The Capital Account

Question 7

The balance of payment accounts are accounts that set out the financial transactions that one country has with other countries. There are three main sections:
• The Current Account;
• The Capital Account;
• ___________________.

Answer 7

The Financial Account

Question 8

Capital account
The third component of the balance of payments statement is the capital account, which includes ____________. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 8

capital transfers

Question 9

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 9

investment

Question 10

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 10

consumption

Question 11

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 11

investment rather than consumption

Question 12

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 12

official debt forgiveness

Question 13

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 13

money migrants bring into the country

Question 14

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 14

balance

Question 15

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the _________________________) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 15

difference between the money going in and out of the country

Question 16

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 16

is small

Question 17

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 17

relative to the current and financial accounts

Question 18

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for __________ rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 18

investment

Question 19

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than _________. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 19

consumption

Question 20

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for __________________. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 20

investment rather than consumption

Question 21

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include _____________ and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 21

official debt forgiveness

Question 22

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the _________________. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 22

money migrants bring into the country

Question 23

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The __________ (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 23

balance

Question 24

Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the _________________________) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2

Answer 24

difference between the money going in and out of the country

Question 25

Capital account The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account _________ relative to the current and financial accounts. https://teara.govt.nz/en/balance-of-payments/page-2

Answer 25

is small

Question 26

Capital account The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small ________________________. https://teara.govt.nz/en/balance-of-payments/page-2

Answer 26

relative to the current and financial accounts

Question 27

_______________ The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the ________________. When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the ________________.

Answer 27

financial account

Question 28

Financial account The ________ in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account. When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.

Answer 28

shortfall

Question 29

Financial account The shortfall in ______________ is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account. When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.

Answer 29

New Zealand’s current account

Question 30

Financial account The shortfall in New Zealand’s current account is financed by _________________, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account. When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.

Answer 30

borrowing in international capital markets

Question 31

Financial account The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, _____________ or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account. When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.

Answer 31

selling assets

Question 32

Financial account The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling asset or _________________. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account. When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.

Answer 32

or incurring liabilities to foreign residents

Question 33

Financial account The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to ________________, are recorded in the financial account. When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.

Answer 33

foreign assets bought by New Zealanders

Question 34

Financial account The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account. When foreign residents buy more assets in New Zealand ____________ (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.

Answer 34

than New Zealanders buy abroad

Question 35

Financial account The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account. When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been _____________), more capital flows into the country than out. Then a net surplus is recorded on the financial account.

Answer 35

most often the case

Question 36

Financial account The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account. When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a ___________ on the financial account.

Answer 36

net surplus is recorded

Question 37

The ____________ shows the balance of short term transactions with the rest of the world.

Answer 37

current account

Question 38

The current account shows the ______________ with the rest of the world.

Answer 38

balance of short term transactions

Question 39

The current account shows the balance of short term transactions with the _________________.

Answer 39

the rest of the world.

Question 40

The current account has four components: • The balance on goods, which records _______________________. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.

Answer 40

exports and imports of physical, relocatable merchandise

Question 41

The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, _________, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.

Answer 41

brings in a credit

Question 42

The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars ________. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.

Answer 42

creates a debit

Question 43

The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of ___________ such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.

Answer 43

non-physical items

Question 44

The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as ________________. • The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.

Answer 44

transport, travel and insurance

Question 45

The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records ________________________, and also payments to foreign residents on assets held in New Zealand. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.

Answer 45

dividends and interest payments that New Zealanders earn on assets held overseas

Question 46

The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also _________________________. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.

Answer 46

payments to foreign residents on assets held in New Zealand

Question 47

The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are _________________ in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.

Answer 47

intended to be used for consumption

Question 48

The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and ______________. A good example is the money that immigrants may send to relatives in their home country.

Answer 48

for which there is no payment

Question 49

The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand. • The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the ______________________.

Answer 49

money that immigrants may send to relatives in their home country

Question 50

In the __________ money sent from Tongans in New Zealand, Australia and the United States back to their families made up about half the national income of Tonga. Much of the money from New Zealand was sent through Western Union, which had two branches in the Tongan capital, Nuku’alofa.

Answer 50

early 2000s

Question 51

In the early 2000s money sent from Tongans in ___________________ back to their families made up about half the national income of Tonga. Much of the money from New Zealand was sent through Western Union, which had two branches in the Tongan capital, Nuku’alofa.

Answer 51

New Zealand, Australia and the United States

Question 52

In the early 2000s money sent from Tongans in New Zealand, Australia and the United States back to their families made up about ________________. Much of the money from New Zealand was sent through Western Union, which had two branches in the Tongan capital, Nuku’alofa.

Answer 52

half the national income of Tonga

Question 53

A ___________ in any period reduces New Zealand’s total net foreign debt, and improves its international investment position. However, New Zealand usually has a current account deficit, increasing the country’s total net foreign debt.

Answer 53

current account surplus

Question 54

A current account surplus in any period _______________, and improves its international investment position. However, New Zealand usually has a current account deficit, increasing the country’s total net foreign debt.

Answer 54

reduces New Zealand’s total net foreign debt

Question 55

A current account surplus in any period reduces New Zealand’s total net foreign debt, and improves its ____________. However, New Zealand usually has a current account deficit, increasing the country’s total net foreign debt.

Answer 55

international investment position

Question 56

A current account surplus in any period reduces New Zealand’s total net foreign debt, and improves its international investment position. However, New Zealand _____________, increasing the country’s total net foreign debt.

Answer 56

usually has a current account deficit

Question 57

A current account surplus in any period reduces New Zealand’s total net foreign debt, and improves its international investment position. However, New Zealand usually has a current account deficit, ________________.

Answer 57

increasing the country’s total net foreign debt

Question 58

The ____________ at any point in time can be considered as the sum of all past current account balances.

Answer 58

net investment position

Question 59

The net investment position ___________ can be considered as the sum of all past current account balances.

Answer 59

at any point in time

Question 60

The net investment position at any point in time can be considered as the _________________.

Answer 60

sum of all past current account balances

Question 61

While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our __________________ and a high proportion of the sharemarket (50-60%) is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. Interest payments to these investors also creates outflows in the Balance on Income.

Answer 61

major companies are foreign owned

Question 62

While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a ________________________, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. Interest payments to these investors also creates outflows in the Balance on Income.

Answer 62

high proportion of the sharemarket (50-60%) is also foreign owned

Question 63

While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a _____________________. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. Interest payments to these investors also creates outflows in the Balance on Income.

Answer 63

a net outflow of dividends and profits

Question 64

While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively ___________________ have attracted substantial overseas deposits. Interest payments to these investors also creates outflows in the Balance on Income.

Answer 64

high interest rates in New Zealand

Question 65

While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted ________________. Interest payments to these investors also creates outflows in the Balance on Income.

Answer 65

substantial overseas deposits

Question 66

While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. __________________ also creates outflows in the Balance on Income.

Answer 66

Interest payments to these investors

Question 67

While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. Interest payments to these investors also _________________.

Answer 67

creates outflows in the Balance on Income