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QUESTION 20 If the Japanese company Panasonic moves its European headquarters from London to Paris, the current account of the U.K. balance of payments will be credited the current account of the U.K. balance of payments will be debited the capital/financial account of the U.K. balance of payments will be credited the capitalfinancial account of the U.K. balance of payments will be debited
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Answer #1

Q20. Option 3

Capital account records net change in ownership of national assets. As the headquarters gets shifted from London to Paris, the money outflows from Paris to London and hence the capital account of UK gets credited.

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