chapter 12: national income accounting and the balance of payments Flashcards
balance of payments
all transactions between residents and non-residents during a period of time.
all transactions between residents and non-residents during a period of time.
balance of payments
current account
net exports of goods and services (include primary and secondary incomes)
net exports of goods and services (include primary and secondary incomes)
current account
primary income (part of the current account)
wages and dividends received by national production factor abroad
wages and dividends received by national production factor abroad
primary income (part of the current account)
secondary income (part of the current account)
transfer payment (e.g. pension) of nationals abroad
transfer payment (e.g. pension) of nationals abroad
secondary income (part of the current account)
financial account
records the international sales or purchases of assets
records the international sales or purchases of assets
financial account
capital account
mostly nonmarket activities, or represent the acquisition or disposal of nonproduced, nonfinancial, and possibly intangible assets (such as copyrights and
trademarks).
mostly nonmarket activities, or represent the acquisition or disposal of nonproduced, nonfinancial, and possibly intangible assets (such as copyrights and
trademarks).
capital account
balance of payments identity
current account + capital account = financial account
debit
payment to non-resident
credit
payment from non-resident
net foreign investment
current account surplus
net foreign wealth
stock of foreign assets
national income identity
Y=C+G+CA
GNP / GDP
gross national product = income of all the national factors of production. GDP domestic = income of all factors of production geographically in the country.
financial (or capital) inflow
credit entry in the financial account
financial (or capital) outflow
debit entry in the financial account
official international reserves
net foreign wealth of the central bank
net foreign wealth of the central bank
official international reserves
official settlements balance
financial account of the central bank
