Final answer:
Income payments generally include dividends and rent payments received as an outcome of financial investments. Loan repayments are not considered income payments because they do not represent income generated from investments, but rather the return of borrowed capital. The correct options are a,c.
Step-by-step explanation:
The income payments component of the current account balance involves transactions where money is exchanged due to investments and can include dividends received by financial investors on their foreign investments or payments made to foreign investors who have invested in the reporting country. In the context of this definition, the types of payments that would be considered as income payments are:
- Dividends (a)
- Rent payments (c)
Loan repayments (b) are not considered income payments because they are the return of borrowed principal rather than an income earned on an investment. The correct options are a,c.