2.1.4 - BOP

• The balance of payments is a record of all financial dealings over a period of time between economic agents of one country and all other countries .
• The balance of payments is made up of the current account, capital account and financial account
• A current account surplus is where exports are greater than imports, so the current balance is positive.
• .A current account deficit is where imports are greater than exports, so the current balance is negative.
• Current account:

  1. Trade in goods
  2. Trade in services
  3. Investment income
  4. Current transfers