CHAPTER 36 BALANCE OF PAYMENTS Flashcards Preview

EDEXCEL THEME 2 MACRO ECONOMICS > CHAPTER 36 BALANCE OF PAYMENTS > Flashcards

Flashcards in CHAPTER 36 BALANCE OF PAYMENTS Deck (8)
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1
Q

Balance of payments account

A

A record of all financial dealings over a period of time between economic agents of one country and all other countries

2
Q

Balance of trade

A

The value of visible exports minus visible imports

3
Q

Capital and financial accounts

A

That part of the balance payments account where flows of savings, investments and currency are recorded.

4
Q

Current account

A

That part of the balance of payments account where payments for the purchase and sale of goods and services are recorded

5
Q

Current balance

A

The difference between the value of total exports (visible and invisible) and total imports

6
Q

Current accounts deficit or surplus

A

A deficit exists when imports are greater than exports; a surplus exists when the value of exports are greater than imports

7
Q

Invisibles

A

Trade in services, transfers of income and other payments or receipts

8
Q

Visibles

A

Trade in goods