Balance of Payments keyword refresher/review

What is this?

A record of all economic transactions between a country and the rest of the world, over the course of one year

• Balance of payments

• Current account

• Capital account

• Financial account

What is this?

A component of the balance of payments that measures the flow of goods, services, and income between a country and the rest of the world.

• Debit

• Current account

• Money transfer

• Financial account

What is this?
A component of the balance of payments that measures the flow of capital between a country and the rest of the world.

• Credit

• Current account

• Capital account

• Financial account

What is this?
A component of the balance of payments that measures the flow of financial assets and liabilities between a country and the rest of the world.

• Wealth

• Current account

• Capital account

• Financial account

What is this?
A transaction that results in money coming into a country, such as the sale of exports or the receipt of investment income.

• Wealth

• Credit

• Import

• Trade in goods

What is this?
A transaction that results in money leaving a country, such as the purchase of imports or the payment of investment income to foreign investors.

• Capital account

• Credit

• Debit

• Trade in goods

What is this?
The value of goods that a country exports and imports.

• Current account

• Balance of payments

• Trade in services

• Trade in goods

What is this?
The value of services that a country exports and imports.

• Current account

• Balance of payments

• Trade in services

• Trade in goods

What is this?
The financial capital flow from one country to another

• Foreign direct investment

• Current transfers

• Balance of trade

• Financial account

What is this?
This comprises income earned by domestic citizens who own assets overseas minus income earned by foreign citizens who own assets in this country. It includes profits, dividends on investments abroad and interest.

• A component of the current account of the balance of payments: Income

• A component of the current account of the balance of payments: Current transfers

• A component of the current account of the balance of payments: Balance of trade

• A component of the current account of the balance of payments: FDI