Australia's Foreign Liabilities (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What are net foreign liabilities a long-term consequence of?
What are net foreign liabilities a long-term consequence of?
Running persistent current account deficits
What are the two main components of net foreign liabilities?
What are the two main components of net foreign liabilities?
Net foreign debt and net foreign equity
What must happen with foreign debt obligations?
What must happen with foreign debt obligations?
Regular interest payments regardless of econ conditions
When are returns on foreign equity paid?
When are returns on foreign equity paid?
Only when the investment is profitable
What were Australia's net foreign liabilities in 2022-23?
What were Australia's net foreign liabilities in 2022-23?
$822.2 billion (36.9% of GDP)
What does the debt servicing ratio measure?
What does the debt servicing ratio measure?
Proportion of export revenue spent on interest
What was Australia's debt servicing ratio in 2022-23?
What was Australia's debt servicing ratio in 2022-23?
4.8%
What credit rating does Australia hold?
What credit rating does Australia hold?
AAA (one of few countries)
What happened to Australia's net foreign equity since 2013?
What happened to Australia's net foreign equity since 2013?
Became negative (Aus. assets exceeded foreign)
What is the key difference between debt and equity financing?
What is the key difference between debt and equity financing?
Debt serviced in downturns; equity only when profitable