A-level
Economics A-level:
The balance of payments
Learn It
Check you know the main principles by reviewing the list of different topic areas, either click on the topic heading to quick learn the whole topic or pick individual principles to brush up.
The balance of payments
The structure of the balance of payments
- The current account
- The capital account
- Net errors and omissions
- Why does the balance of payments always balance?
The UK balance of payments
Commonly asked questions about the UK balance of payments
- Why is the 'trade in goods' section always in deficit?
- Why is the 'trade in services' section always in surplus?
- Why is the capital account usually in surplus?
Problems of balance of payments disequilibria
- What is the difference between trade deficit, current account deficit and balance of payments deficit?
- Does a current account deficit matter?
- What is wrong with a current account surplus?
How does a government reduce a current account deficit?
Test It
Now you have learnt the main principles, test yourself with these sample questions. If you get stuck, go back and review the principle again.
Revise It
Print these out and carry them with you!