balance of payments Flashcards
1
Q
what transactions are on the current account.
A
imports/exports of goods and services, payments to foreign holders of a country investment, payments received from investments abroad, FDI
2
Q
what does the financial account measure?
A
capital flows and long term investment
3
Q
what does the capital account measure
A
measures debt forgiveness and safe transfers
4
Q
components which are a part of the current account
A
trade balance + primary income balance + secondary income balance
5
Q
what is credit and debit?
A
credit- inflow
debit- outflow
