The Balance of Payments and Exchange Rates (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What does the balance of payments record?
What does the balance of payments record?
All economic transactions with other nations
Which three main accounts make up the balance of payments?
Which three main accounts make up the balance of payments?
Current, financial, and capital accounts
What does the financial account track?
What does the financial account track?
Changes in ownership of financial assets
What is FDI outward?
What is FDI outward?
UK investors making investments overseas
Which is NOT a category within the financial account?
Which is NOT a category within the financial account?
Capital transfers from migration
What must happen if a country runs a current account deficit?
What must happen if a country runs a current account deficit?
It must run a financial account surplus
What is the largest item in the capital account?
What is the largest item in the capital account?
Flows of capital associated with migration
When were reserve assets particularly important?
When were reserve assets particularly important?
Under the fixed exchange rate system
Which can cause a current account deficit?
Which can cause a current account deficit?
High inflation relative to other countries
What future implication arises from selling assets abroad to fund a deficit?
What future implication arises from selling assets abroad to fund a deficit?
Outflows of investment income in future