The Current Account and International Payments

Vocabulary flashcards covering the components of the current account, foreign income inflows, transfers, and specific US balance of payments data for 2011.

Current Account

An account that focuses on items related to trade (exports and imports), income earned during a specific period (such as dividends from foreign stocks), and unilateral transfers of money.

Capital Account

An account that focuses on transfers or payments that occur due to changes in the ownership of assets.

Exports (Current Account)

Goods and services provided to other countries that result in a payment inflow of dollars back to domestic private citizens, corporations, or the government.

Income (Current Account)

Earnings received during a period from foreign assets, such as dividends paid by a foreign company or rent collected on foreign real estate and converted back to domestic currency.

Transfers (Current Account)

Direct payments sent abroad without an exchange of goods or services, such as sending money to family members or friends in other countries to help support them.

2011 US Exports

An inflow of payments from the rest of the world to the US amounting to $2{,}105\text{ billion}$ (or $\$2{,}100{,}000{,}000{,}000$) for goods and services.

2011 US Income from Foreign Assets

An inflow of payments to Americans earned from owning assets abroad, totaling $739\text{ billion}$ (or $\$739{,}000{,}000{,}000$).