Balance of payments
Balance of Payments Essay
The balance of payments is a record of transactions between a country and the rest of the world. It is broken up into 2 different accounts - the current account and the capital and financial account.
The current account is record of all transactions australia has with other countries with regards to goods/services, the income balance and current transfers.
The income balance refers to profits earned by Australian companies overseas, dividends earned by Australians overseas - which are all credits and the debits are the same payments made to overseas residents i…
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