Current account

Which part of the current account does the following affect? NZ tourists going overseas

• Balance of goods

• Balance on services

• Balance on income

• Balance on current transfers

• None - it's part of the capital account

Which part of the current account does the following affect? BNZ (an Australian-owned bank) sending profits to Australia

• Balance of goods

• Balance on services

• Balance on income

• Balance on current transfers

• None - it's part of the capital account

Which part of the current account does the following affect? BNZ (an Australian-owned bank) buys TSB (an NZ-owned bank)

• Balance of goods

• Balance on services

• Balance on income

• Balance on current transfers

• None - it's part of the capital account

Which part of the current account does the following affect? Second-hand cars are imported into NZ.

• Balance of goods

• Balance on services

• Balance on income

• Balance on current transfers

• None - it's part of the capital account

Which part of the current account does the following affect? The NZ government funds a development project in a developing country.

• Balance of goods

• Balance on services

• Balance on income

• Balance on current transfers

• None - it's part of the capital account

Which part of the current account does the following affect? Sam buys Apple shares.

• Balance of goods

• Balance on services

• Balance on income

• Balance on current transfers

• None - it's part of the capital account

Which part of the current account does the following affect? Sam's Apple shares pay a dividend ($!) to Sam when Apple earns a profit.

• Balance of goods

• Balance on services

• Balance on income

• Balance on current transfers

• None - it's part of the capital account

Which part of the current account does the following affect? Sam moves to Australia to teach. He then sends back some of his income to his mum in NZ.

• Balance of goods

• Balance on services

• Balance on income

• Balance on current transfers

• None - it's part of the capital account

The terms of trade show...

• Exports relative to imports

• Export prices relative to import prices

• How much imports cost

• Trade regulations

Which if these is NOT TRUE when the terms of trade improve

• NZ can buy more imports for a given level of exports

• Our current account is likely to become more positive

• NZ must have improved trade agreements with other countries

• The price of exports relative to imports has increased