balance of payments Flashcards
1
Q
what is the balance of payments
A
-measure of money going in and out of an economy
2
Q
current account
A
-measure of trade in goods and services
-measure of income: investment and transfers
3
Q
financial account and capital account
A
-portfolio investments: bonds, shares
-foreign direct investment
-reserves (currency, gold)
-capital: debt forgiveness, inheritance, death duties
4
Q
current account deficit, what, how
A
-imports greater than exports
-comes from surpluses in capital and financial account
