IB Economics - Balance of Payments

This account records a nation's imports and exports of goods, services, net investment income, and net transfers.

• current account

• financial account

• official reserves

This account records flows of money from the purchase and sale of real estate and financial assets between countries.

• current account

• financial account

• official reserves

Leroy Jenkins buys stock in a Japanese video game company. This transaction would be recorded as

• a credit to the US

• a debit to the US

Leroy Jenkins buys stock in a Japanese video game company. This transaction would be recorded as

• current account

• financial account

• official reserves

The Malaysian government buys a new Boeing 787 from the U.S. This transaction is recorded as

• a credit to the U.S.
• a debit to the U.S.

The Malaysian government buys a new Boeing 787 from the U.S. This transaction is recorded as

• current account

• financial account

• official reserves

The U.S. Federal Reserve sells $4 million worth of Treasury bonds to a Chinese investor. This would be recorded as

• current account

• financial account

• official reserves account

The U.S. Federal Reserve sells $4 million worth of Treasury bonds to a Chinese investor. This would be recorded as

• a debit to the U.S. 
• a credit to the U.S.

What is not a part of the BoP

• Investment Account

• Current Account

• Financial Account

• Capital Account

What is not a part of the Current Account Balance

• Buying firms

• Net Income Flows

• Net Transfers

• Balance of trade in goods and services