Skip to content

Course home

4.1.7 Balance of payments

What must offset a current account deficit in the overall balance of payments?

A

A financial account surplus or other matching inflow of funds, so the overall balance remains zero.

B

A financial account deficit or other matching outflow of funds, so the overall balance remains zero.

C

A current account surplus or other matching increase in exports, so the overall balance remains zero.

D

A government budget surplus or other matching reduction in spending, so the overall balance remains zero.

4.1.7 Balance of payments Flashcards

  1. A Level
  2. /Economics
  3. /4.1.7 Balance of payments

Flashcards for Edexcel A A Level Economics 4.1.7 Balance of payments, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 24 cards, matched to the Edexcel A A Level Economics (9EC0) specification.