Balance of Payments

Multiple Choice

Does this transaction occur in the CA or CFA account?

1 - An Ecoland firm sells $500 million of toy robots to a Chinese company.

• CA

• CFA

Multiple Choice

Does this transaction occur in the CA or CFA account?

2 - Ecoland buys $10 billion of new United States Treasury bonds.

• CA

• CFA

Multiple Choice

Does this transaction occur in the CA or CFA account?

3 - Ecoland invests in US Blockbuster stock.

• CA

• CFA

Multiple Choice

Does this transaction occur in the CA or CFA account?

4 - Ecoland buys $8 billion worth of euros.

• CA

• CFA

Multiple Choice

Does this transaction occur in the CA or CFA account?

5 - A Japan-based company sells roasted coffee to Ecoland.

• CA

• CFA

Multiple Choice

Does this transaction occur in the CA or CFA account?

6 - Bob, a Canadian, buys stocks in an Ecoland company.

• CA

• CFA

Multiple Choice

Does this transaction occur in the CA or CFA account?

7 - Ecoland buys a lot of potatoes from Ireland.

• CA

• CFA

Multiple Choice

Does this transaction occur in the CA or CFA account?

8 - A German company buys 100 bulldozers from Ecoland.

• CA

• CFA

Multiple Choice

Does this transaction occur in the CA or CFA account?

9 - Ecoland buys a lot of Pokemon cards from Japan.

• CA

• CFA

Multiple Choice

Does this transaction occur in the CA or CFA account?

10 - Ecoland buys corn from the US and the US buys tye-dye shirts from Ecoland.

• CA

• CFA

Multiple Choice

Which Ecoland account is affected, and is it a credit or debit?

An Egyptian business buys orchids from Ecoland.

• Credit to the Current Account

• Debit to the Current Account

• Credit to the Capital Financial Account

• Debit to the Capital Financial Account

Multiple Choice

Which Ecoland account is affected, and is it a credit or debit?

Ecoland buys Amazon stock in the US stock market.

• Credit to the Current Account

• Debit to the Current Account

• Credit to the Capital Financial Account

• Debit to the Capital Financial Account

Multiple Choice

Which Ecoland account is affected, and is it a credit or debit?

Ecoland imports medicine from Spain.

• Credit to the Current Account

• Debit to the Current Account

• Credit to the Capital Financial Account

• Debit to the Capital Financial Account

Multiple Choice

Which Ecoland account is affected, and is it a credit or debit?

Ecoland exports water to southern China.

• Credit to the Current Account

• Debit to the Current Account

• Credit to the Capital Financial Account

• Debit to the Capital Financial Account

Multiple Choice

Which Ecoland account is affected, and is it a credit or debit?

France invests in Ecoland’s bonds.

• Credit to the Current Account

• Debit to the Current Account

• Credit to the Capital Financial Account

• Debit to the Capital Financial Account

Multiple Choice

Which Ecoland account is affected, and is it a credit or debit?

Ecoland builds a manufacturing plant in Singapore.

• Credit to the Current Account

• Debit to the Current Account

• Credit to the Capital Financial Account

• Debit to the Capital Financial Account

Drag and Drop

Remitopia and Ecoland begin trading for the first time! Ecoland sells zebras and mopeds to Remitopia but imports nothing from Remitopia.



Ecoland now has a surplus in their ​

Placeholder

Account, which means they have a 

deficit in their​

Placeholder

Account. 


On the other hand, this means that Remitopia now has a ​

Placeholder

in their Current



Account, which means they have a ​ ​​

Placeholder

in their Capital Financial Account.

Drag these tiles and drop them in the correct blank above

Current

Capital Financial

surplus

deficit

Drag and Drop

Ecoland and Remitopia’s trade is balanced, but then Remitopia invents new cell phone technology and Ecoland begins importing more phones.



Ecoland now has a ​

Placeholder

in their Current Account, which means they have a 



​

Placeholder

in their Capital Financial Account. 



On the other hand, this means that Remitopia now has a surplus in their ​

Placeholder

Account, which means they have a deficit in their ​

Placeholder

Account.

Drag these tiles and drop them in the correct blank above

deficit

surplus

Current

Capital Financial

Multiple Choice

CA + CFA= ?

• 100

• 0

• 1

Multiple Choice

Ecoland invests $5M in US stocks. How much does their CA increase?

• $5 Million

• 0

• $10 Million

• $25 Million

Multiple Choice

Ecoland’s CA account is $5 billion. What is the value of their CFA account?

• -$5 Billion

• 0

• $10 Billion

• $25 Billion

Multiple Choice

Ecoland’s CFA account decreases by $12M. CA increases by…?

• $24 Billion

• 0

• $12 Million

• $2 Billion

Multiple Choice

 Egypt imports $1,000 of food from Ecoland. How much does Ecoland’s CFA decrease?

• $1000

• 0

• $100

• $1 Million