Current account

Question 1

What is the current account

Answer 1

Part of the balance of payments showing the reciepts and payments for trade in goods and services, transfer payments and income flows between Australia and the rest of the world.

Question 2

What are net goods

Answer 2

Difference between what australia recieves for exports and pays out for imports of goods

Question 3

What are net services

Answer 3

Services bought and sold without recieving a ‘good’ e.g. transport, travel, telephone calls etc.

Question 4

What is net primary income

Answer 4

• earnings on investments e.g. interest on foreign debts(-ive) , investment in australia from foreigners (+ive)

Question 5

Net secondary income

Answer 5

Non market transfers e.g. foreign workers sending money overseas