Macro Economics 5 Flashcards
1
Q
Balance of Payments (BOP)
A
Summary of a country’s international trade
2
Q
Balance of Trade
A
Trade Surplus (XM)
3
Q
Current Account
A
Trades in Goods and Services, Investment Income, Net Transfers
4
Q
Financial Account
A
Measures the purchase and sale of financial assets abroad
5
Q
Financial Account Surplus
A
Inflow>Outflow
6
Q
Financial Account Deficit
A
Outflow>Inflow
7
Q
Appreciation
A
The increase of value of a country’s currency with respect to a foreign currency.
8
Q
Depreciation
A
The loss of value of a country’s currency with respect to a foreign currency.
9
Q
Foreign Exchange Shifters
A
Change in Preferences, Change in Income, Change in Inflation and Change in Interest Rates
