Macroeconomic Influences on NZ Economy Flashcards
The _______________ are accounts that set out the financial transactions that one country has with other countries. There are three main sections:
• The Current Account;
• The Capital Account;
• The Financial Account.
balance of payment accounts
The balance of payment accounts are accounts that set out the _____________________________. There are three main sections:
• The Current Account;
• The Capital Account;
• The Financial Account.
financial transactions that one country has with other countries
The balance of payment accounts are accounts that set out the _______________ that one country has with other countries. There are three main sections:
• The Current Account;
• The Capital Account;
• The Financial Account.
financial transactions
The balance of payment accounts are accounts that set out the financial transactions that ___________________. There are three main sections:
• The Current Account;
• The Capital Account;
• The Financial Account.
one country has with other countries
The balance of payment accounts are accounts that set out the financial transactions that one country has with other countries. There are three main sections:
• __________________;
• The Capital Account;
• The Financial Account.
The Current Account
The balance of payment accounts are accounts that set out the financial transactions that one country has with other countries. There are three main sections:
• The Current Account;
• _________________;
• The Financial Account.
The Capital Account
The balance of payment accounts are accounts that set out the financial transactions that one country has with other countries. There are three main sections:
• The Current Account;
• The Capital Account;
• ___________________.
The Financial Account
Capital account
The third component of the balance of payments statement is the capital account, which includes ____________. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
capital transfers
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
investment
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
consumption
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
investment rather than consumption
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
official debt forgiveness
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
money migrants bring into the country
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
balance
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the _________________________) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
difference between the money going in and out of the country
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
is small
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
relative to the current and financial accounts
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for __________ rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
investment
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than _________. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
consumption
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for __________________. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
investment rather than consumption
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include _____________ and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
official debt forgiveness
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the _________________. The balance (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
money migrants bring into the country
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The __________ (the difference between the money going in and out of the country) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
balance
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the _________________________) on the capital account is small relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
difference between the money going in and out of the country
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account _________ relative to the current and financial accounts.
https://teara.govt.nz/en/balance-of-payments/page-2
is small
Capital account
The third component of the balance of payments statement is the capital account, which includes capital transfers. As with current transfers, capital transfers also involve the movement of cash or other items of value, but are intended to be for investment rather than consumption. Such transfers include official debt forgiveness and the money migrants bring into the country. The balance (the difference between the money going in and out of the country) on the capital account is small ________________________.
https://teara.govt.nz/en/balance-of-payments/page-2
relative to the current and financial accounts
_______________
The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the ________________.
When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the ________________.
financial account
Financial account
The ________ in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account.
When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.
shortfall
Financial account
The shortfall in ______________ is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account.
When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.
New Zealand’s current account
Financial account
The shortfall in New Zealand’s current account is financed by _________________, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account.
When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.
borrowing in international capital markets
Financial account
The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, _____________ or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account.
When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.
selling assets
Financial account
The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling asset or _________________. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account.
When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.
or incurring liabilities to foreign residents
Financial account
The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to ________________, are recorded in the financial account.
When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.
foreign assets bought by New Zealanders
Financial account
The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account.
When foreign residents buy more assets in New Zealand ____________ (as has been most often the case), more capital flows into the country than out. Then a net surplus is recorded on the financial account.
than New Zealanders buy abroad
Financial account
The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account.
When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been _____________), more capital flows into the country than out. Then a net surplus is recorded on the financial account.
most often the case
Financial account
The shortfall in New Zealand’s current account is financed by borrowing in international capital markets, selling assets or incurring liabilities to foreign residents. Such flows, along with those relating to foreign assets bought by New Zealanders, are recorded in the financial account.
When foreign residents buy more assets in New Zealand than New Zealanders buy abroad (as has been most often the case), more capital flows into the country than out. Then a ___________ on the financial account.
net surplus is recorded
The ____________ shows the balance of short term transactions with the rest of the world.
current account
The current account shows the ______________ with the rest of the world.
balance of short term transactions
The current account shows the balance of short term transactions with the _________________.
the rest of the world.
The current account has four components:
• The balance on goods, which records _______________________. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit.
• The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance.
• The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.
exports and imports of physical, relocatable merchandise
The current account has four components:
• The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, _________, while the import of cars creates a debit.
• The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance.
• The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.
brings in a credit
The current account has four components:
• The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars ________.
• The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance.
• The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.
creates a debit
The current account has four components:
• The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit.
• The balance on services, which records transactions relating to the provision of ___________ such as transport, travel and insurance.
• The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.
non-physical items
The current account has four components:
• The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit.
• The balance on services, which records transactions relating to the provision of non-physical items such as ________________.
• The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.
transport, travel and insurance
The current account has four components:
• The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit.
• The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance.
• The balance on investment income, which records ________________________, and also payments to foreign residents on assets held in New Zealand.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.
dividends and interest payments that New Zealanders earn on assets held overseas
The current account has four components:
• The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit.
• The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance.
• The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also _________________________.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.
payments to foreign residents on assets held in New Zealand
The current account has four components:
• The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit.
• The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance.
• The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are _________________ in the short term and for which there is no payment. A good example is the money that immigrants may send to relatives in their home country.
intended to be used for consumption
The current account has four components:
• The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit.
• The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance.
• The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and ______________. A good example is the money that immigrants may send to relatives in their home country.
for which there is no payment
The current account has four components:
• The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of kiwifruit, for example, brings in a credit, while the import of cars creates a debit.
• The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance.
• The balance on investment income, which records dividends and interest payments that New Zealanders earn on assets held overseas, and also payments to foreign residents on assets held in New Zealand.
• The balance on current transfers, which records transactions relating to the provision of goods, services, cash or other items of value between residents and non-residents that are intended to be used for consumption in the short term and for which there is no payment. A good example is the ______________________.
money that immigrants may send to relatives in their home country
In the __________ money sent from Tongans in New Zealand, Australia and the United States back to their families made up about half the national income of Tonga. Much of the money from New Zealand was sent through Western Union, which had two branches in the Tongan capital, Nuku’alofa.
early 2000s
In the early 2000s money sent from Tongans in ___________________ back to their families made up about half the national income of Tonga. Much of the money from New Zealand was sent through Western Union, which had two branches in the Tongan capital, Nuku’alofa.
New Zealand, Australia and the United States
In the early 2000s money sent from Tongans in New Zealand, Australia and the United States back to their families made up about ________________. Much of the money from New Zealand was sent through Western Union, which had two branches in the Tongan capital, Nuku’alofa.
half the national income of Tonga
A ___________ in any period reduces New Zealand’s total net foreign debt, and improves its international investment position. However, New Zealand usually has a current account deficit, increasing the country’s total net foreign debt.
current account surplus
A current account surplus in any period _______________, and improves its international investment position. However, New Zealand usually has a current account deficit, increasing the country’s total net foreign debt.
reduces New Zealand’s total net foreign debt
A current account surplus in any period reduces New Zealand’s total net foreign debt, and improves its ____________. However, New Zealand usually has a current account deficit, increasing the country’s total net foreign debt.
international investment position
A current account surplus in any period reduces New Zealand’s total net foreign debt, and improves its international investment position. However, New Zealand _____________, increasing the country’s total net foreign debt.
usually has a current account deficit
A current account surplus in any period reduces New Zealand’s total net foreign debt, and improves its international investment position. However, New Zealand usually has a current account deficit, ________________.
increasing the country’s total net foreign debt
The ____________ at any point in time can be considered as the sum of all past current account balances.
net investment position
The net investment position ___________ can be considered as the sum of all past current account balances.
at any point in time
The net investment position at any point in time can be considered as the _________________.
sum of all past current account balances
While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our __________________ and a high proportion of the sharemarket (50-60%) is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. Interest payments to these investors also creates outflows in the Balance on Income.
major companies are foreign owned
While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a ________________________, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. Interest payments to these investors also creates outflows in the Balance on Income.
high proportion of the sharemarket (50-60%) is also foreign owned
While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a _____________________. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. Interest payments to these investors also creates outflows in the Balance on Income.
a net outflow of dividends and profits
While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively ___________________ have attracted substantial overseas deposits. Interest payments to these investors also creates outflows in the Balance on Income.
high interest rates in New Zealand
While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted ________________. Interest payments to these investors also creates outflows in the Balance on Income.
substantial overseas deposits
While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. __________________ also creates outflows in the Balance on Income.
Interest payments to these investors
While the Balance on Goods and Services can fluctuate between deficits and surplus, the Balance on Income consistently in deficit. This is because a number of our major companies are foreign owned and a high proportion of the sharemarket (50-60%)is also foreign owned, resulting in a net outflow of dividends and profits. In addition, relatively high interest rates in New Zealand have attracted substantial overseas deposits. Interest payments to these investors also _________________.
creates outflows in the Balance on Income
