4.6.3—Interdependence between accounts Topic Practice
4.6.3—Interdependence between accounts Topic Practice
Students practise calculating financial account balances from current account data and explaining how deficits/surpluses in one account necessitate offsetting entries in others.
How this is tested
- calculate the financial account balance using the identity: financial account = −, as required in Paper 3
- explain interdependence by linking a current account deficit to inflows in the financial account
- interpret BoP data to infer the financial account using the zero-balance rule