the current account

• What is often considered the most important account in the Balance of Payments (BoP)?

  The Current Account
• What does the Current Account record?

  The net income that an economy gains from international transactions
• What are goods referred to as in the context of international trade?

  Visible exports/imports
• What are services referred to as in the context of international trade?

  Invisible exports/imports
• What does net income consist of?

  Income transfers by citizens and corporations
• From whom are credits received in the Current Account?

  From UK citizens who are abroad sending remittances home
• What are debits in the Current Account?

  Payments sent by foreigners working in the UK back to their countries
• What are current transfers typically associated with?

  Payments at government level between countries
• What is an example of a current transfer?

  Contributions to the World Bank