A UK travel agency arranges holidays in the UK for a group of French customers and receives £4,000 from them. In the same month, it pays £1,500 in fees to a French bank for processing its card payments.
Calculate and explain the net effect of these two transactions on the UK's current account balance.
52 exam-style questions on OCR GCSE Economics 4.2 Balance of payments, covering 4.2.1 Balance of payments on current account, 4.2.2 Balanced account, surplus and deficit, 4.2.3 Calculate deficits and surpluses, 4.2.4 Analyse exports and imports data, 4.2.5 Importance of the balance of payments, and 4.2.6 Causes of surpluses and deficits. Each one has a worked solution and a mark scheme showing where the marks go.