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Cambridge IGCSE Economics practice

Paper 2 structured question: Current account of balance of payments

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Current account of balance of payments

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Paper 2Structured Questions2 marks

Understanding the factors influencing current account surpluses is essential for economic analysis.

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Current Account Surplus Factors

A current account surplus indicates that a country is exporting more than it is importing, which can be influenced by various economic factors.

  1. a

    Explain two factors that can lead to a current account surplus.

    Aim for approximately 2 distinct marking points.

    [2]

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Paper 2 structured question: Current account of balance of payments

Paper 2Structured Questions2 marks

Description

Current Account Overview

The current account records a country's transactions with the rest of the world, including trade in goods and services, income, and current transfers.

  1. a

    State two reasons for current account deficits.

    Aim for approximately 2 distinct marking points.

    [2]