The Balance of Payments: The Fundamentals (AQA A-Level Economics): Flashcards
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Balance of payments
Balance of payments
Record of monetary transactions between country and rest of world
Three main accounts in balance of payments
Three main accounts in balance of payments
Current account, capital account, financial account
Four components of current account
Four components of current account
Goods trade, services trade, primary income, secondary income
Balance of trade in goods (other name)
Balance of trade in goods (other name)
Balance of visible trade
Balance of trade in services (type of trade)
Balance of trade in services (type of trade)
Invisible trade (intangible services)
Primary income flows mainly consist of
Primary income flows mainly consist of
Investment income (profits, dividends, interest)
Secondary income flows examples
Secondary income flows examples
Gifts, donations, overseas aid, transfers
Current account deficit means
Current account deficit means
Currency outflows exceed inflows in current account
Foreign direct investment (FDI) involves
Foreign direct investment (FDI) involves
Investment in real productive assets abroad (factories, offices)
Hot money flows are
Hot money flows are
Short-term speculative capital movements between currencies