4.2 Balance of payments Flashcards
1
Q
Balancse of payments
A
Is a record of all financial transactions between one country and the rest of the world
2
Q
Current account
A
The record of trade in goods and services, income flows and transfers between one country and the rest of the world.
3
Q
What is a balance of payment deficit and surplus
A
The sum of exports and the inflow of income and transfers is less than the sum of imports and the outflow of income and transfers.
A Bop current account surplus is where the sum of exports plus the inflow of income and transfers is more than the sum of imports plus the outflow of income and transfers.
4
Q
A
