Balance of Payments
Account recording all economic transactions between country and rest of world.
Formula
Current Account Balance = Exports − Imports (of goods, services, income & transfers)
Real World
The UK has run a persistent current account deficit for decades — importing far more goods than it exports — partly offset by financial capital flowing into London's banking sector.
Exam Focus
Distinguish clearly between the current account and the capital/financial account — confusing them is a common mark-losing error.
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