Balance Of Payments

Question 1

Balance of payments

Answer 1

Measures all international economic transactions between the uk and its trading partners

Question 2

Current account

Answer 2

Inports/exports
Net income
Transfers from migrant abroad

Question 3

Capital account

Answer 3

Purchase and sale of fixed assests such as real estate

Question 4

Financial account

Answer 4

Net foreign investment

Net portfolio investment

Question 5

Errors and ommissions

Answer 5

Missing data eg illegal transfers

Question 6

Reserves and related items

Answer 6

Changes in monetary reserves

Question 7

How to improve current account

Answer 7

Devalue exchange rate
Reduce consumer spending
Supply policies to improve competitiveness of exports