§-Quick questions
QLDEconomicsUnit 3: International economics
Quick questions on Exchange rates and the balance of payments (QCE Economics Unit 3)
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What are the balance of payments?Show answer
The balance of payments records all transactions between Australian residents and the rest of the world. ABS publishes quarterly (cat. no. 5302.0).
What are 1. Balance on goods and services?Show answer
Exports minus imports. Driven by terms of trade and the AUD.
What is 2. Net primary income?Show answer
Interest, dividends and wages paid to/from non-residents. Australia runs a persistent deficit of around 4 percent of GDP due to its net foreign liabilities position.
What is 3. Net secondary income?Show answer
Transfers without a corresponding good or service (foreign aid, remittances).
What is 4. Capital account?Show answer
Small balancing item: capital transfers and acquisition of non-produced non-financial assets.
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