The current account (CA) records net exports, net income from abroad, and net unilateral
transfers.
The CA is not always balanced; it may show a surplus or a deficit. A nation’s balance of trade
(i.e., net exports) is part of the current account and may also show a surplus or a deficit.
The capital and financial account (CFA) records financial capital transfers and purchases and
sales of assets between countries.
The CFA is not always balanced; it may show a surplus (financial capital inflow) or a deficit
(financial capital outflow).
The balance of payments (BOP) is an accounting system that records a country’s international
transactions for a particular time period. It consists of the CA and the CFA.
Any transaction that causes money to flow into a country is a credit to its BOP account, and
any transaction that causes money to flow out is a debit.
The sum of all credit entries should match the sum of all debit entries (CA+CFA=0)
Calculate the CA, the CFA, and the BOP.
transfers.
The CA is not always balanced; it may show a surplus or a deficit. A nation’s balance of trade
(i.e., net exports) is part of the current account and may also show a surplus or a deficit.
The capital and financial account (CFA) records financial capital transfers and purchases and
sales of assets between countries.
The CFA is not always balanced; it may show a surplus (financial capital inflow) or a deficit
(financial capital outflow).
The balance of payments (BOP) is an accounting system that records a country’s international
transactions for a particular time period. It consists of the CA and the CFA.
Any transaction that causes money to flow into a country is a credit to its BOP account, and
any transaction that causes money to flow out is a debit.
The sum of all credit entries should match the sum of all debit entries (CA+CFA=0)
Calculate the CA, the CFA, and the BOP.
