1
Q
The balance of payments
A
- record of all the transactions made between the residents of one country with the residents of all other coutnries
2
Q
current account
A
- transfer of goods and services
- transfer of income
- exports minus imports
- net income
- current transfers
- net exports
3
Q
financial account
A
- records purchases of real assets and financial assets that a country has made abroad and foreign purchases of real and financial assets in the country
4
Q
foreign investment
A
- long term capital investment
- foreigners into australia -> capital inflow and credit
- investing overseas, capital outflow and is a debit
5
Q
portfolio investment
A
- purchase of shares and bonds
- CA
6
Q
reserve account
A
- operated by nations central bank to buy and sell foreign currencies
7
Q
international lending
A
equivalent to buying either a real or financial asset
8
Q
international borrowing
A
- equivalent to selling a real financial asset
