Balance of Payments (Quizlet Revision Activity) | tutor2u Economics
Revision quizzes

Balance of Payments (Quizlet Revision Activity)

  • Levels: A Level, IB
  • Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC

Check and test your understanding of key terms relating to the balance of payments with this Quizlet revision activity

Forecasted percentage change on a year earlier of payments current account to GDP in the United Kingdom from 2017 to 2023

Summary of key terms on the balance of payments

Balance of payments

Records all financial transactions made between consumers, businesses and the government in one country with others

Balance of trade

The value of exports of goods and services minus value spent on imported goods and services

Capital account

Sale/transfer of patents, copyrights, franchises, leases and other transferable contracts, and goodwill

Current account

Overall balance of trade in goods and services and net balance for primary and secondary income

Current account deficit

A deficit occurs when the value of imports of goods/services / investment incomes / secondary incomes is greater than the value of exports

Current account surplus

A surplus occurs when the value of exports of goods/services / investment incomes / secondary incomes is greater than the value of imports

Financial account

Transactions that result in a change of ownership of financial assets and liabilities between countries

Foreign direct investment

Investment made by a firm or individual in one country into business interests located in another country

Hot money (short term capital) flows

Money that moves rapidly around the global financial system seeking the best "risk-adjusted" rate of return

Investment income

Income from equity (dividends) and on debt (interest)

Portfolio investment

Inflows and outflows of debt and equity

Primary income

Incomes from interest, profits, dividends from overseas investment and also migrant remittances

Remittances

Transfers of money across national boundaries by migrant workers

Secondary income

Includes spending on military aid and overseas development aid

Trade deficit

When the value of imports is higher than the value of a country's exports (M>X)

Trade surplus

When the value of exports is higher than the value of a country's imports (X>M)

Subscribe to email updates from tutor2u Economics

Join 1000s of fellow Economics teachers and students all getting the tutor2u Economics team's latest resources and support delivered fresh in their inbox every morning.

You can also follow @tutor2uEconomics on Twitter, subscribe to our YouTube channel, or join our popular Facebook Groups.

Related Collections

Teaching Vacancies

Recruitment

Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u

A New Home for tutor2u Resources

We've just flicked the switch on moving all our digital resources to instant digital download - via our new subject stores.

For every subject you can now access each digital resource as soon as it is ordered. This will always be the latest edition of each resource too (and we'll update you automatically if there is an upgraded version to use).

Simply add the required resources to your cart, checkout using the usual options and your resources will be available to access immediately via your mytutor2u account.