Enhance Your Learning with Economics - Balance of Payments Flash Cards for quick understanding
A record of all economic transactions between the residents of a country and the rest of the world over a specific period of time.
The part of the balance of payments that records a country's transactions in goods, services, primary income, and secondary income with the rest of the world.
The part of the balance of payments that records a country's transactions in financial assets and liabilities with the rest of the world.
The part of the balance of payments that records a country's transactions in financial assets and liabilities, excluding those included in the capital account.
The difference between the value of a country's exports and the value of its imports of goods and services.
Investment made by a company or individual in one country into business interests located in another country.
The rate at which one currency can be exchanged for another currency.
When a country's exports of goods, services, and financial assets exceed its imports of goods, services, and financial assets.
When a country's imports of goods, services, and financial assets exceed its exports of goods, services, and financial assets.
Foreign currency assets held by a central bank or monetary authority to support the country's balance of payments and stabilize its currency.
The process by which a country's balance of payments is brought back into equilibrium through changes in exchange rates, interest rates, and other economic variables.
When a country's current account balance is positive, indicating that it is earning more from its exports of goods, services, and income than it is spending on imports.
When a country's current account balance is negative, indicating that it is spending more on imports of goods, services, and income than it is earning from its exports.
When a country's capital account balance is positive, indicating that it is receiving more financial inflows than outflows.
When a country's capital account balance is negative, indicating that it is experiencing more financial outflows than inflows.
When a country's financial account balance is positive, indicating that it is receiving more financial inflows than outflows.
When a country's financial account balance is negative, indicating that it is experiencing more financial outflows than inflows.
An exchange rate regime where the value of a country's currency is fixed to the value of another currency or a basket of currencies.
An exchange rate regime where the value of a country's currency is determined by market forces of supply and demand.
An exchange rate regime where the value of a country's currency is allowed to fluctuate within a certain range, but with intervention from the central bank to stabilize the exchange rate.
A deliberate downward adjustment in the value of a country's currency relative to another currency or a standard, usually undertaken to improve competitiveness in international trade.
A deliberate upward adjustment in the value of a country's currency relative to another currency or a standard, usually undertaken to reduce inflationary pressures or to correct an undervalued currency.
Foreign currency assets held by a central bank or monetary authority to support the country's exchange rate and ensure stability in the foreign exchange market.
An increase in the value of a country's currency relative to another currency or a standard, resulting in higher purchasing power of the currency.
A decrease in the value of a country's currency relative to another currency or a standard, resulting in lower purchasing power of the currency.
When a country's exports of goods and services exceed its imports, resulting in a positive trade balance.
When a country's imports of goods and services exceed its exports, resulting in a negative trade balance.
The ratio at which a country's exports can be exchanged for imports, indicating the relative prices of a country's exports and imports.
The removal or reduction of barriers to international trade, such as tariffs, quotas, and other restrictions, to promote free trade and economic integration.
The use of trade barriers, such as tariffs, quotas, and other restrictions, to protect domestic industries from foreign competition.
The difference between the value of a country's exports and the value of its imports of goods.
The difference between the value of a country's exports and the value of its imports of services.
Trade in services, such as tourism, transportation, and financial services, which are not physically tangible.
Trade in goods, such as manufactured goods, agricultural products, and raw materials, which are physically tangible.
The sum of the balance of trade, balance of services, net income from abroad, and net transfers from abroad, indicating a country's overall position in international trade and payments.
The difference between a country's capital inflows and capital outflows, indicating the net change in its ownership of foreign assets and liabilities.
The difference between a country's financial inflows and financial outflows, indicating the net change in its ownership of financial assets and liabilities.
Foreign currency assets held by a central bank or monetary authority to support the country's exchange rate and ensure stability in the foreign exchange market.
A situation where a country's balance of payments is not in equilibrium, indicating a surplus or deficit that needs to be corrected through policy measures.
The framework within which a country's exchange rate is determined and managed, including fixed, floating, and managed exchange rate systems.
The policy decisions and actions taken by a country's central bank or monetary authority to influence the value of its currency in the foreign exchange market.
The policy decisions and actions taken by a country's central bank to control the money supply, interest rates, and inflation, influencing the overall economic conditions and stability.
The policy decisions and actions taken by a country's government to manage its revenue and expenditure, influencing the overall economic conditions and stability.
The market where currencies are bought and sold, facilitating international trade and investment by determining the exchange rates between currencies.
The price of one currency in terms of another currency, indicating the value of a currency in the foreign exchange market.
The buying or selling of a country's currency by its central bank or monetary authority in the foreign exchange market to influence the exchange rate and stabilize the currency.
Government-imposed restrictions on the buying and selling of foreign currencies, usually to manage the country's exchange rate and control capital flows.
A fixed exchange rate regime where a country's currency is tied to the value of another currency or a standard, with little or no fluctuation allowed.
A weighted average of several currencies used as a reference for determining the value of a country's currency in a managed exchange rate system.
A monetary authority that issues a domestic currency fully backed by a foreign reserve currency, maintaining a fixed exchange rate with the reserve currency.
An international organization that provides financial assistance, policy advice, and technical assistance to its member countries, promoting global monetary cooperation and stability.
An international organization that deals with the global rules of trade between nations, promoting free trade and reducing trade barriers.