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Why are purchases and sales of financial assets excluded?

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Question

Why are purchases and sales of financial assets excluded?

Options

  • They do not represent current production of goods and services

  • They are included in change in inventories

  • They are always imports

  • They are government consumption

MCQ
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Solution

Shares, bonds, and debentures are financial assets rather than current goods and services. Their purchase or sale does not represent current production.

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