AQA A-LEVEL ECONOMICS 7136/2
PAPER 2 Q&A (NATIONAL AND
INTERNATIONAL ECONOMY) 2026/2027
LATEST UPDADE
Current Account - ✔✔✔ANSWER-The section in a nation's
international balance of payments that records its trades of
goods and services, primary income (when a firm who is
operating abroad sends money back to its original country) and
secondary income (when a person is working abroad and sends
money back to their home country)
Financial Account - ✔✔✔ANSWER-The part of the balance of
payments that records purchases of assets a country has made
abroad (FDI), portfolio investment (stocks and shares) and the
flows of 'hot money'
1
, The J Curve Effect -✔✔✔ANSWER-The effect of currency
depreciation on the trade deficit (current account deficit)
Exchange Rate - ✔✔✔ANSWER-The relative value of one currency
expressed in terms of another currency. (eg. £1 = $1.20)
Floating Exchange Rate - ✔✔✔ANSWER-When an exchange rate
is determined by the supply and demand for a currency without
government intervention
2
PAPER 2 Q&A (NATIONAL AND
INTERNATIONAL ECONOMY) 2026/2027
LATEST UPDADE
Current Account - ✔✔✔ANSWER-The section in a nation's
international balance of payments that records its trades of
goods and services, primary income (when a firm who is
operating abroad sends money back to its original country) and
secondary income (when a person is working abroad and sends
money back to their home country)
Financial Account - ✔✔✔ANSWER-The part of the balance of
payments that records purchases of assets a country has made
abroad (FDI), portfolio investment (stocks and shares) and the
flows of 'hot money'
1
, The J Curve Effect -✔✔✔ANSWER-The effect of currency
depreciation on the trade deficit (current account deficit)
Exchange Rate - ✔✔✔ANSWER-The relative value of one currency
expressed in terms of another currency. (eg. £1 = $1.20)
Floating Exchange Rate - ✔✔✔ANSWER-When an exchange rate
is determined by the supply and demand for a currency without
government intervention
2
