Question

1. The government spends more on foreign aid than:

   	A.	welfare.
   	B.	None of the answers is correct.
   	C.	health care.
   	D.	Social Security

2. Which of the following is NOT included in a country's current account?

   	A.	foreign direct investment
   	B.	net income on capital held abroad
   	C.	transfer payments abroad, such as foreign aid
   	D.	net exports

Answer 1

1.

The government in most of the economies spend more on welfare, health care, and social security than foreign aid.

Thus, none of the given answers are correct.

Option B is the correct answer.

2.

The current account for a nation includes its transactions with the rest of the world. It specifically includes its net trade in goods and services, its net earnings on cross border investments, and net transfer payments.

Note that foreign direct investment would not be considered as a part of the Current account rather the net income from such investments is considered a part of the current account.

Thus, Option A is the correct answer.