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IB Economics HL 4.6.2 Components of the Balance of Payments Questions

Practise 4.6.2 Components of the balance of payments in IB Economics HL by reviewing the concepts and applying them to marked questions.

Syllabus
First assessment 2022
Course
Economics HL
Level
HL

Exam points

  • Current account includes trade in goods, trade in services, income, and current transfers
  • Capital account includes capital transfers and transactions in non-produced non-financial assets
  • Financial account includes FDI, portfolio investment, reserve assets, and official borrowing

IB Economics HL 4.6.2 Components of the Balance of Payments Questions question 1

[Maximum number: 1]

Table 1 shows the gross domestic product (GDP) of the United States of America (USA) economy from 2020 to 2023. The USA is not the fastest growing economy in the world, but it is the largest. It also has the largest budget deficit and the largest current account deficit in the world. As a result, the actions of its central bank, the Federal Reserve, always make news.

Table 1

Table 1

Using Table 2, calculate the deficit or surplus in the balance of trade in goods and services for Quarter 3 (Q3) only.

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