A current account is an assessment of a country's current balance of transactions. If the current account is in surplus, it means that a nation has excess funds and is investing money overseas. When in deficit, a nation is borrowing from other countries to finance its activities. This ...
The current account of a country may be in the positive (surplus) or in the negative (deficit). If the exports are more than the imports, the current account will be in the surplus. If the country imports than it exports, the current account will be in the positive. Current account of...
A country's current account deficit is equal to the net outflow of goods, services, investment income, and transfers. A country's current account can be in balance, in deficit, or in surplus at any given time. Whether in surplus or deficit, the current account's non-zero balance must ...
However, demographics do not explain cross-country differences in the level of current account balances, i.e. the high level of Korea's current account surpluses is mainly explained by a country fixed effect. When we add the real exchange rate as an additional explanatory variable, it is ...
By making these two changes, you can change the status of your current account from negative to positive. This means the country is earning more than it's spending. Not unlike your personal budget, this means more money is coming in than going out. Increasing the positive balance in the cu...
The current account is a component of a country's balance of payments that tracks the flow of goods, services, income, and transfers between residents of the country and the rest of the world over a specific period, typically a year.
Become a Study.com member to unlock this answer! Create your account View this answer Consumer Surplus (CS) is the difference between what consumers are willing to pay and what they actually have to pay. Willingness to pay is based on... See full answer below....
A current account surplus is a positivecurrent account balance, indicating that a nation is a net lender to the rest of the world. A current account surplus can be contrasted with acurrent account deficit. A country's current account surplus is a strong measure of a country's international c...
1)What is the current account balance of a nation with a government budget deficit of＄128 billion, private saving of＄806 billion, and domestic capital formation of＄777 billion? 2) “A country is better off running a current account surplus rather than a current account deficit.” Do you...
A current account deficit isn't always a bad thing. A country may have a deficit because it is importing large quantities of the raw materials it needs to produce goods and services it will export in the future. Its long-term strategy is to create a current account surplus, which...