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AP Macroeconomics 6.1 Balance of Payments Accounts Questions

Practise organising trade, income, transfers, and asset transactions within the balance of payments, then calculate and explain offsetting international account balances.

Syllabus
Effective Fall 2022
Course
AP Macroeconomics

Exam points

  • sort trade, income, transfers, and asset purchases into current or financial accounts
  • assign international money inflows and outflows as credits or debits in the correct account
  • calculate trade, current-account, and financial-account balances from international transaction data
  • apply CA + CFA = 0 to connect account deficits or surpluses with capital inflows or outflows
  • explain how income, imports, exports, or foreign asset demand change the two account balances

Covered syllabus points

MEA-4.A—a. Define the current account (CA), the capital and financial account (CFA), and the balance of payments (BOP). b. Explain how…

Question 1

[Maximum number: 1]

Assume that the economy of Vortania is in long-run equilibrium.

Based on the change in net exports identified in part D, what will happen to each of the following in the short run?

The capital and financial account (CFA) balance in Vortania. Explain.

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