Modules 41 - 45

A summary of a country's transactions with other countries.

• merchandise payments on goods and services

• balance of payments accounts

• current account

• balance of payments on goods and services

A country's balance of payments on goods and services plus net international transfer payments and factor income; also known as the current account.

• trade balance

• current account

• balance of payments on the current account

• balance of payments on the financial account

The difference between the value of a country's exports and the value of its imports during a given period.

• human capital

• merchandise trade balance

• balance of payments on goods and services

• balance of payments accounts

The difference between a country's exports and imports of goods; also known as trade balance.

• balance of payments

• financial account

• merchandise trade balance

• balance of payments on goods and services

The difference between a country's sales of assets to foreigners and its purchases of assets from foreigners during a given period; also known as the financial account.

• balance of payments on goods and services

• balance of payments on the current account

• balance of payments on the financial account

• physical capital

The market in which currencies are traded.

• appreciation

• foreign exchange market

• exchange rates

• depreciation

The prices at which currencies trade.

• equilibrium exchange rate

• exchange rates

• appreciation

• depreciation

When a currency becomes more valuable in terms of other currencies.

• depreciation

• appreciation

• foreign exchange market

When the value of an asset is reduced by wear, age, or obsolescence; also, when a currency becomes less valuable in terms of other currencies.

• foreign exchange rate

• depreciation

• appreciation

• equilibrium exchange rate

The exchange rate at which the quantity of a currency demanded in the foreign exchange market is equal to the quantity supplied.

• inflation rate

• equilibrium exchange rate

• purchasing power parity

• foreign exchange rates