Current account
Definition. The current account is the part of the balance of payments that records a country trade in goods and services, primary income such as wages and investment returns, and secondary income or current transfers. It shows the net flow of income arising from current cross border transactions.
A surplus means the value of exports and income inflows exceeds imports and outflows. The visible trade balance and invisible trade balance together form its largest components.
This term belongs to The Balance of Payments in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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