| What does the Balance of Payments record? | -The Flow of Money OUT of a Nation [Imported Goods eg]
-The Flow of Money INTO a Nation [Exported Goods eg]]
-It is also the Value of the Exports and Imports, not the Volume. Prices Changing can change the Balance of Payments |
| What are the 4 Sections to the Current Account? [Main Part of the Balance of Payments] | 1. Trade in Goods - The Visible Trade. [Cars, Computers..]
2. Trade in Services - The Invisible Trade [Tourism, Insurance..]
3. International Flows of Income made in Salaries, Interest, Profit and Dividend. [Interest on an Account held in a Foreign Nation]
4. Transfer of Money from 1 Person, or Government, to Another [Foreign Aid, Remittances] |
| How can a Balance of Payments be Unbalanced? | -This is when the Flows of Money INTO isn't Equal to the Outflow
-Money Inflow > means there is a Surplus, while Money Outflow > means there is a Deficit |
| State the UK's Balance of Payments | -Britain has a Deficit overall to its Balance of Payments
-A Surplus in the Invisible Trade, but a Greater Deficit in the Visible Trade. |
