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4.2.5 Importance of the balance of payments

Card 1 of 24

Why does the UK current account matter for whether the country is living within its external means?

A

The UK depends on continuing foreign confidence to lend money and buy assets.

B

Investment creates UK capacity and jobs and is harder to withdraw quickly.

C
  • Borrowing from abroad
  • Selling UK assets to foreign owners
D

It compares UK earnings from abroad with payments to the rest of the world.

Card 1 of 24

4.2.5 Importance of the balance of payments Flashcards

  1. GCSE
  2. /Economics
  3. /4.2.5 Importance of the balance of payments

24 flashcards on OCR GCSE Economics 4.2.5 Importance of the balance of payments: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.

Flashcards