Transacion Transaction Amount
number (Year 2017)
1 Interest paid by a Country B’s corporation on a
bond owned by a Country A’s bank $1’000
2 Interest paid by Country A’s government on a treasury
bills owned by Country C’s government $2’000
3 Country A imports of coffee from Country B $3’000
4 Country A’s citizen donation to a Non-Governmental-
Organization located in Country A $4’000
5 Country A’s sale of Country C’s government bonds $5’000
6 Country B’s export of raw materials to Country C $6’000
Which transactions belong to Country A's current accounts?
a. 3,4, and 5.
b. 3 and 5.
c. 1,2, 3, 4, 5.
d. 1,2,3.

Current assets or liability is any transaction which provides benefit or is an obligation for one year. There are transaction related to interest expense and interest receivable in Country A. These transactions are assumed to provide benefit for one year. The import is also considered and incorporated in current account because it will provide monetary value for less than a year.