Balance of payment - based on a YouTube video

What does the Balance of Payments record?

• The government's budget deficit or surplus

• The total amount of a country's currency in circulation

• All of the trade and financial transactions between one country and others

• Only the domestic financial transactions within a country

What is counted as a positive entry in the Balance of Payments?

• Capital outflows

• Outflows of currency for imports

• Domestic investments

• Inflows of foreign currency

What does the current account of the Balance of Payments measure?

• A nation's external trade performance

• The value of domestic investments

• The government's budget

• The total amount of a country's debts

What is included in the balance of trade in goods?

• Net primary income

• Tangible things such as cars and washing machines

• Net secondary income

• Services such as health and education

What does net primary income include?

• Payments to the European Union

• Interest from savings held overseas

• Domestic investments

• Exports of goods

What is a key aspect of the financial account?

• Domestic savings

• Trade in services

• Trade in goods

• Foreign direct investment

What happens if a country runs a current account deficit?

• It will only trade goods, not services

• It will stop trading with other countries

• It will automatically run a government budget surplus

• It must run a financial account surplus

What was the UK's trade deficit in goods and services as a percentage of national income around 2015?

• One percent

• Ten percent

• Five percent

• Two to three percent

Which country had a current account surplus of one-fifth of its national output in 2015?

• South Korea

• Germany

• Singapore

• China

What must the Balance of Payments do at the end of the day?

• Show a surplus

• Balance

• Reflect the government's budget

• Show a deficit