Balance of payments

Question 1

what is the balance of payments?

Answer 1

The record of all financial transactions between one country and the rest of the world

Question 2

What is current account?

Answer 2

The🗂 record of trades in goods and services Income flows and transfers🗂 between one country and the rest of the world

Question 3

What is the balance of payments on current account ?

Answer 3

The -total net trade- in goods and Services and -income flows- between one country and the rest of the world

Question 4

What is a balanced current account?

Answer 4

-sum of exports +inflow of income and transfers is =sum of imports +outflow of income and transfers

Question 5

What is a current account deficit

Answer 5

When some of exports + inflow of income and transfers is less than the sum of imports + the outflaw of income and transfers

Question 6

What is a current account surplus?

Answer 6

Sum of exports + inflow of income and transfers is greater than the sum of imports + the outflow of income and transfers

Question 7

Trade in goods

Answer 7

Shows the⚖ balance of earnings from exports and spending on imports of goods

Question 8

Trade in services

Answer 8

Shows the balance of earnings from exports and the spending on imports of services

Question 9

Income flows

Answer 9

Earnings from investments abroad

Question 10

Transfers

Answer 10

• They cover the transfer of money or goods and services without any requirement for payment
• Transfers do not reflect any actual trade