28 Balance of payments on the current account - Government and the economy

balance of payments

record of all transactions relating to international trade

capital and financial account

that part of the balance of payments where flows of savings, investment and currencies are recorded

current account

part of the balance of payments where all exports and imports are recorded

exports

goods and services sold overseas

imports

goods and services bought from overseas

current account deficit

when value of imports exceeds the value of exports

current balance

difference between total exports and total imports (visible and invisible)

current account surplus

when value of exports exceeds the value of imports

balance of trade / visible balance

difference between visible exports and visible imports

invisible trade

trade in services

primary income

money received from the loan of production factors abroad

secondary income

government transfers to and from overseas agencies such as the EU

visible trade

trade in physical goods

exchange rate

price of one currency in term of another