Balance of Payments Flashcards
1
Q
What are the Balance of Payments
A
The Balance of Payments is a record of payments between one country and the rest of the world.
2
Q
What is the current account
A
The Current Account is part of the Balance of Payments. It measures trade in goods, trade in services, investment income and current transfers.
3
Q
Current Account Deficit
A
The Current Account is in deficit when outflows are greater than inflows and so it is a negative number.
4
Q
Current Account Surplus
A
The Current Account is in surplus when inflows are greater than outflows and so it is a positive number.
5
Q
Capital & Financial Account
A
The Capital & Financial Account is part of the Balance of Payments and tracks investments into, and out of, a country.
