balance of payments Flashcards
1
Q
what are the components of the balance of payments
A
- current account
- capital and financial account
2
Q
what is the balance of payments
A
a record of financial transcations between one country and the rest of the world
3
Q
what are the 4 components of the current account
A
- trade in goods
- trade in services
- investment income
- current transfers
4
Q
what is a current transfer
A
when individuals transfer money in/out of the county(remittance)
5
Q
what is the term used to describe a current account of 0
A
current account equilibrium
6
Q
what are the 2 types of transcations that appear on the capital and financial account
A
- FDI
- hot money flows
