a) Balance of payments

• define balance of payments

• a record of a country’s international transactions

• state what the balance of payments account consists of

• current account

• financial and capital account

• define the current account

• define the components of the current account

• the flow of money around

  • the trade balance

    • revenue from exports - expenditure on imports

  • primary income

    • money transferred from foreign factors of production

  • secondary income

    • money transferred between nations as contributions or aid

• state how the current account balance is represented

• as a % of GDP

• define the financial and capital account

• the flow of money around savings, investments, and currency stabilisation