20 thoughts on “Balance of payments: Current account | Foreign exchange and trade | Macroeconomics | Khan Academy

  1. where did u get that calculator? where and can i get it and do i have to pay? great videos, recently subscribed and it's great to watch these videos 🙂

  2. As a US citizen earning income from my job abroad and I repatriate my earnings back home, is that a credit to the US income account? or to net transfers?

  3. So the net transfers would be seen as an inflow on the current account if the inflows in transfers were greater than outflows? Meaning that the US sends more money in the form of transfers out of the country than they receive? Great vid by the way, THANK YOU SO FREAKING MUCH!

  4. USA having current account deficit means that  $474B dollars have to be traded for their equivalent in one's foreign currency. So Current account deficit lowers USD rate against such foreign currency while a Current Account Surplus would require foreigners to trade their currency for USD in order to honor their payments. Right?

  5. I do not get why the BoP has to balance – I'm pretty confused. For instance, let's say NX are positive; that means there is money coming into the economy via Exports (more so than has left through Imports). Why not just spend that money on stuff in our economy? Why does it have to back out through the Capital Account?

  6. Can someone help me out on this one, it's pretty urgent and I don't have a single idea what it means.

     
    For e.g. if say China has a big NX of $5bn (NX>$0), but a small capital account.
    Therefore they have a positive BOP of $5bn.
    Thus they have a outflow of funds of -$5bn (change in KA is -$5bn to balance the BOP)  
     
    1. So what does it mean by a small capital account yet they have a huge outflow of funds (sizeable change in capital account)??
     
    2. Won't that means now they have a huge capital account now after the change even if they have a small capital account from the start?

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