12. Economic Performance - Balance of Payments, Current Account

Question 1

What are the four sections of the current account?

Answer 1

Trade in goods - Visible Trade
Trade in services - Invisible Trade
Primary Net Income
Secondary Net Income

Question 2

What is the current account do?

Answer 2

Measures the volume of flows of money in and out of the country.

Question 3

How is the account balance?

Answer 3

Each of the four sectors will have a net positive or negative level – you add up all the notes levels from the sectors to work out with you have a budget deficit or budget surplus.

Question 4

What is the budget deficit?

Answer 4

When you have a net negative balance of payments when the value of money leaving the country exceed the amount entering the country.GS>T in a fiscal year (April-April)

Question 5

What is a budget surplus?

Answer 5

When you have a net positive balance of payments when the value of money entering the country exceeds the value of that leaving.GS