ch 28 definitions

Question 1

balance of payments

Answer 1

record of all transactions relating to international trade

Question 2

capital and financial account

Answer 2

that part of the balance of payments where flows of savings, investment and currencies are recorded

Question 3

current account

Answer 3

part of the balance of payments where all exports and imports are recorded

Question 4

exports

Answer 4

goods and services sold overseas

Question 5

imports

Answer 5

goods and services bought from overseas

Question 6

current account deficit

Answer 6

when value of imports exceeds the value of exports

Question 7

current balance

Answer 7

difference between total exports and total imports

Question 8

current account surplus

Answer 8

when value of exports exceeds the value of imports

Question 9

balance of trade or visible balance

Answer 9

difference between visible exports and visible imports

Question 10

invisible trade

Answer 10

trade in services

Question 11

primary income

Answer 11

money received from the loan of production factors abroad

Question 12

secondary income

Answer 12

government transfers to and from overseas agencies such as the EU

Question 13

visible trade

Answer 13

trade in physical goods

Question 14

exchange rate

Answer 14

price of one currency in terms of another