Th2.1: Current Account

Question 1

What are the two parts the current account is split up into?

Answer 1

trade in goods

trade in services

Question 2

Trade in goods meaning

Answer 2

goods that are traded, whether raw materials or finished goods.
known as visibles as one can physically see them

Question 3

Trade in services meaning

Answer 3

services traded in or out of a country, known as invisibles

Question 4

What is the difference between visible exports and visible imports known as?

Answer 4

the balance of trade

Question 5

What is a British family going to Spain on holiday an example of?

Answer 5

an invisible import

Question 6

What is a Japanese firm buying insurance from a city of London firm an example of?

Answer 6

invisible export

Question 7

Balance of trade in goods and services formula

Answer 7

balance of trade + balance of invisibles

Question 8

What can be done with wages, interest, profit or dividends?

Answer 8

can be repatriated into the country (AKA REMITTANCES)