OCR GCSE Economics - 4.2 - Balance of Payments

The current account shows

• International movement of goods and services

• International movement of capital

• Foreign exchange market

• International movement of investments

How is the purchase of imported cars recorded in the UK’s BoP?

• As a goods credit in the current account

• As a goods credit in the income account

• As a goods credit in the capital account

• As a goods debit in the current account

How is spending by tourists visiting the UK recorded in the BoP?

• As a service debit in the current account

• As an income credit in the current account

• As a service credit in the current account

• As a service credit in the capital account

A payment for which nothing of economic value is received in return is called

• A transfer payment

• A waste of money

• A deadweight loss

Which of the following structural factors would reduce a trade deficit?

• An appreciation of the exchange rate

• An increase in multi-factor productivity growth

• Additional regulation of the business sector

• An increase in the company tax rate

Which of the following shows a current account surplus?

• Export revenue = import spending

• Export revenue is greater than import spending

• Export revenue is less than import spending

Which of the following shows a current account deficit?

• Export revenue = import spending

• Export revenue is greater than import spending

• Export revenue is less than import spending

Which of the following shows a balanced current account?

• Export revenue = import spending

• Export revenue is greater than import spending

• Export revenue is less than import spending

Balance of Trade is calculated as:

• Exports - imports

• Exports of visibles - import of visibles

• Exports of goods and services - import of goods and services

Which is not included in the current account?

• Trade in goods

• Transfer of ownership in fixed assets

• Trade in services

• Income