The Balance of Payments (HSC SSCE Economics): Flashcards
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Balance of payments
Balance of payments
Records all transactions between country & rest of world
Credits in BOP
Credits in BOP
Money flowing into country (positive)
Two main BOP accounts
Two main BOP accounts
Current account and capital & financial account
Current account transactions are
Current account transactions are
Non-reversible (cannot be undone once completed)
BOGS equals
BOGS equals
Net goods + Net services
Net primary income records
Net primary income records
Income from factors of production (interest, dividends)
Terms of trade formula
Terms of trade formula
BOP balancing relationship
BOP balancing relationship
Current account + Capital & financial account = 0
Direct investment threshold
Direct investment threshold
More than 10% of shares in a company
Main structural cause of primary income deficit
Main structural cause of primary income deficit
Savings-investment gap (low national savings)