EconomicsCode 9708
Current account of the balance of payments
What this topic asks you to be able to do
- what the current account within the balance of payments is made up of: trade in goods, trade in services, primary income and secondary income; what a balance and imbalances (deficit and surplus) mean for that account
- working out the balance of trade for goods, for services, and for goods and services together, and the current account balance (CAB)
- the reasons why the current account of the balance of payments can become imbalanced
- the effects of current account imbalances in the balance of payments on the domestic economy and on the external economy