Measuring The Performance Of An Economy

Question 1

What makes up the current account?

Answer 1

Sales of goods and services to the world (exports)

Purchases of goods and services from the rest of the world (imports)

Primary income receipts

Payments for services

Question 2

What makes up the financial account?

Answer 2

Financial flows in and out of the country:

Purchases and sales of assets (bonds and shares)

Question 3

What accounts does the Balance Of Payments account consist of

Answer 3

The current account

The financial account