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Writer's pictureCaris

Are remittances recorded as primary or secondary income under BOP?


June 2023, Paper 13, Question 17

A Bangladeshi citizen is employed as a construction worker in Qatar. He sends some of his wages to his family in Bangladesh.

How will this be recorded on Qatar's balance of payments?

A) as part of the balance of trade in services

B) as part of net primary income

C) as part of net secondary income

D) as part of the financial account


Mark scheme answer: B



November 2023, Paper 11, Question 26

A Kenyan banker who lives and works in India sends 15% of their wage back to Kenya every month.

What would be the change in the current account components for either country?

A a fall in secondary income for India

B an increase in the balance of trade in services for Kenya

C an increase in the current account surplus for India

D an increase in primary income for Kenya


Mark scheme answer: A


Which is the correct answer?

In the June 2023 question, the mark scheme gave primary income (option B) as the correct answer and in the November 2023 question, the mark scheme gave secondary income (option A) as the correct answer. This has caused some confusion and concern as it wasn't

clear why the answers would be different, with most teachers concluding that secondary income would be the correct answer for both questions.


After a full investigation, CIE board agree that the answer to both questions should be 'secondary income' and so the correct option for Q17 on the June 2023 Paper 13 should be option C. CIE apologise for any confusion this may have cause teachers and candidates.

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