Practise classifying current-account credits and debits, calculating trade and current balances and explaining deficits or surpluses through competitiveness, income and exchange…
Which components are included as primary income in the current account of the balance of payments?
trade
in goods
current
transfers
employment
income from
abroad
key
✓ = included
not included
✓
✓
✓
✓
×
✓
✓
What is the most likely cause of a current account deficit on the balance of payments?
an undervalued exchange rate
a relatively low rate of inflation
a shrinking domestic economy
a general fall in national productivity
The graph shows the change in the current account of Belgium's balance of payments from 2016 to 2017.
What will be the most likely impact of the change shown by the graph on Belgium's domestic economy?
a fall in the rate of economic growth
a fall in the foreign currency reserves
a fall in the number of unemployed
a fall in the rate of inflation