A52-Imbalance of Payments


Read the following carefully and then answer the questions:
REMINDER:  The CAPITAL account is also referred to as the FINANCIAL account.

Current account:  exports and imports of goods, services, net investment income, and net transfers.
Capital (financial) account: purchase and sale of financial assets.
If the transaction uses foreign currency it is a DEBIT (negative).
If the transaction earns foreign currency it is a CREDIT (positive).  

A52-Imbalance of Payments


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