Unit 24: Balance of Payments

In economics, the 'balance of payments' means...

• The amount of money a country owes to other countries
• The total value of goods and services produced within a country
• The number of imports and exports of a country
• Record of all economic transactions between the residents of a country and the rest of the world

What does 'invisible goods' refer to?

• tangible physical goods and services

• Intangible products or services

• Visible products or services

• Tangible products or services

What does 'visible goods' refer to?

• Invisible products that cannot be seen or touched
• Digital items that are intangible
• Services provided by a company
• Physical products that can be seen and touched

Which TWO of these also mean the same as 'balance of trade'.

• trade surplus

• trade deficit

• net exports

• net trade balance

What are the components of the balance of payments account?

• Trade account, merchandise account, and service account

• Current account, capital account, and capital and financial account

• Savings account, checking account, and credit card account
• Income account, expense account, and investment account

What is the balance of trade in goods?

• The balance of trade in goods is the difference between a country's income and expenses.
• The balance of trade in goods is the difference between a country's exports and imports of physical goods.
• The balance of trade in goods is the total value of a country's currency.
• The balance of trade in goods is the amount of physical goods a country produces.

What does a 'current account surplus' mean?

• Imports exceed exports
• Exports exceed imports
• No trade activity
• Equal balance of trade

What is meant by the current account surplus narrowing?

• Increase in the surplus due to decreasing exports and increasing imports
• No change in the surplus due to stable exports and imports
• Reduction in the deficit due to increasing exports and decreasing imports
• Reduction in the surplus due to decreasing exports or increasing imports