ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit entry in Secondary Income Account
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Credit entry in Primary Income Account
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Credit Entry in the Financial Account
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This transaction would not be recorded in the BoP
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Detailed explanation-1: -International accounts overview The current account balance (seasonally adjusted current price) for December quarter 2022 was a surplus of $14.1b. The current account balance increased $13.4b from the revised September quarter 2022 surplus of $0.8b.
Detailed explanation-2: -It is calculated by subtracting the value of the goods and services Australia buys from overseas from the value of the goods and services we sell to other countries. As of December 2022, Australia’s trade balance was $12, 237 million (seasonally adjusted).
Detailed explanation-3: -The term balance of payments refers to all the international transactions made between the people, businesses, and government of one country and any of the other countries in the world. The accounts in which these transactions are recorded are called the current account, the capital account, and the financial account.
Detailed explanation-4: -The balance of payments (BOP) is the record of all international financial transactions made by the residents of a country. There are three main categories of the BOP: the current account, the capital account, and the financial account.