Th2.1: Balance of Payments Flashcards
1
Q
What is the balance of payments?
A
a record of all financial dealings over a period of time between economic agents of one country and another
2
Q
What are imports?
A
when goods and services come in, so money goes out
3
Q
What are exports?
A
when goods and services go out, so money comes in
4
Q
What is the balance of payments made up of?
A
the current account, capital account and financial account
5
Q
What does the current account do?
A
records payments for the purchase of goods and services
6
Q
What do the capital and financial account do?
A
record flows of money associated with saving, investment, speculation and current stabilisation
