The balance of payments and current account
The balance of payments and current account
The balance of payments records all transactions between a country and the rest of the world. It consists of three main accounts: the current account, the capital account and the financial account. The current account is commonly used to assess external economic performance because it records trade and income flows.
Step-by-step lessons covering Edexcel A A Level Economics 2.1.4 Balance of payments for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.