Meaning and components of Current Account in Balance of Payments, Calculating Current Account Balance
Contents
What you’ll learn
- What is the meaning of Current Account in Balance of payments?
- What are the various components of current account?
- How can we calculate the current account balance in balance of payments?
- What is meant by Surplus current account, Deficit current account and Balanced current account?
Requirements
- Basic understanding of economic principles such as supply and demand, inflation and interest rates
Description
- What is the meaning of Current Account in Balance of Payments?
- A country’s current account balance can be influenced by a variety of factors. What are those factors?
- What are the transactions which are recorded in the current account of balance of payments?
- What are the components of Current account in balance of payments?
- What is meant by visible items?
- What type of transactions are recorded in respect of goods?
- What is meant by invisible items?
- What type of transactions are recorded in respect of services?
- What is the meaning of unilateral transfers?
- If unilateral transfers are sent abroad, where are they recorded in the current account – debit or credit side?
- What is meant by income from investments received from abroad and where are they recorded in the current account?
- How can we calculate the current account balance in Balance of Payments?
- What is meant by balance of visible trade and balance of invisible trade?
- How can we calculate the net income from abroad and the net unilateral transfers?
- What is meant by Surplus current account?
- What does surplus current account indicate?
- What is meant by Deficit current account?
- What does deficit current account indicate?
- Is it possible that in surplus current account, any specific component of current account may individual deficits but overall, credit side is more than debit side?
- What are the three different situations which can arise in respect of current account in balance of payments?
Who this course is for:
- Students and any individual who enjoys learning about various concepts of economics