Balance of Payments Flashcards
1
Q
what is the balance of payments
A
a summary of all transactions between one country and the rest of the world over a year
2
Q
what does the balance of payments consist of
A
current account
capital account
financial account
3
Q
what is the current account
A
the sum of a country’s balance on trade in goods and services, net income from abroad and net current transfers
4
Q
what is the current account
A
the sum of a country’s balance on trade in goods and services, net income from abroad and net current transfers
5
Q
what are the sub sections of the current account
A
TRADE BALANCE
-trade in goods
-trade in services
-primary income- uk earning from overseas assets minus payments made to foreign owners of uk assets
-secondary income- money transfers between governments
