Which of the following is not included in Australia's current account?Australia's new hotel investment in Fiji.Australia's imports from New Zealand.Australia's exports to Japan.Income received from Australia's portfolio investment in Europe.Dividends paid to an India company that invested in Australia's stock market.
Question
Which of the following is not included in Australia's current account?Australia's new hotel investment in Fiji.Australia's imports from New Zealand.Australia's exports to Japan.Income received from Australia's portfolio investment in Europe.Dividends paid to an India company that invested in Australia's stock market.
Solution
The item that is not included in Australia's current account is "Australia's new hotel investment in Fiji." This is because the current account records transactions related to goods, services, income, and current transfers between residents and non-residents. However, investments in physical assets like a new hotel in another country are part of the capital account, not the current account.
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