Balance Of Payments Flashcards
1
Q
What is the balance of payments
A
The balance of payments is the record of all cash inflows and outflows of a country (Imports and Exports.)
2
Q
What is the capital account
A
Sale/Transfer of patents, copyrights, franchises, leases and other transferase contracts and goodwill.
3
Q
What is the current account
A
The overall balance of trade in goods and services.
4
Q
Financial accounts
A
Includes all of the transactions that result in a change of ownership of financial assets and liabilities between.
5
Q
Factors which impact a deficit or a surplus
A
Exchange rates Availability of the factors of production Productivity Economic recession Demand for goods Fiscal measures Protectionism Supply side policies Higher Inflation
6
Q
Measures to reduce the countries imbalance on the current account.
A
Devalue currency to make exports more competitive and imports more expensive
Encourage subsidies to domestic producers
Protectionism
Monetary measures.
