The Balance of Payments (Edexcel A-Level Economics A): Quizzes
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Practise the questions
10 questions from this quiz
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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
What is a credit item in the balance of payments?
What is a credit item in the balance of payments?
Incoming payment to the UK
Which three accounts make up the balance of payments?
Which three accounts make up the balance of payments?
Current, capital, and financial accounts
Which account receives the most attention from economists?
Which account receives the most attention from economists?
Current account
How many years has the UK recorded a goods trade surplus since 1950?
How many years has the UK recorded a goods trade surplus since 1950?
Only 6 years
Since when has the UK maintained a consistent surplus in services trade?
Since when has the UK maintained a consistent surplus in services trade?
Since 1966
What must the overall balance of payments always equal?
What must the overall balance of payments always equal?
Zero
If one account shows a deficit, what must happen elsewhere?
If one account shows a deficit, what must happen elsewhere?
A surplus must occur in another account
What creates demand for pounds in foreign exchange markets?
What creates demand for pounds in foreign exchange markets?
Foreigners buying UK goods/services/assets
How is the capital account described compared to other accounts?
How is the capital account described compared to other accounts?
Relatively small