The current account Flashcards
1
Q
Four parts of the CA:
A
- Balance on merchandise trade
- Net services
- Net primary income
- Net secondary income
2
Q
Balance on merchandise trade
A
Made up of merchandise export receipts, minus merchandise import payments.
3
Q
Net services
A
Made up of services export receipts minus service import payments. (tourism)
4
Q
Net primary income
A
Made up of receipts of income from holding foreign assets minus payments of income to service foreign liabilities. (Interest and shares)
5
Q
Net secondary income
A
Involves a one-way movement of money where nothing is expected in return. (Gifts)
