Balance of payments Flashcards
1
Q
Balance of payments
A
Records all flows of money into and out of the UK
2
Q
Balance of payments accounts
A
Current accounts and capital/financial accounts
3
Q
Current account
A
Trade in goods
Trade in services
Primary income
Secondary income
4
Q
Injections into circular flow
A
Exports (X)
Government spending (G)
Investment spending (I)
5
Q
Leakages from the circular flow
A
Imports (M)
Taxation (T)
Savings(S)
6
Q
Current account meanings
A
It measures that value of imports and exports (goods and services) in the current year
7
Q
Capital account meanings
A
Refers to non monetary and fixed assets e.g. when an immigrant comes to the UK their assets become a part of the UK’s assets
8
Q
Financial account meanings
A
Refers to the movement of financial assets e.g. shares in foreign companies
