International Trade and Money summary Questions and Answers 2023

Balance of payments accounts - -A summary of the country's transactions with other countries. -Factor Income - -Payments for the use of factors of production owned by residents of other country's -International Transfers - -Funds sent by residents of one country to residents of another -Foreign Exchange Reserves - -Stocks of foreign currency that governments maintain to buy their own currency on the foreign exchange market -Current Account - -A country's balance of payments on goods and services plus net international transfer payments and factor income -Balance of payments on goods and services - -A country's difference between its exports and its imports during a given period -Trade Balance - -Difference between a country's exports and imports of goods (not services) -(Balance of payments on the )Financial Account (also called Capital Account) - -A country's difference between its sales of assets to foreigners and its purchase of assets from foreingers during a given period -Capital Inflows - -Borrowing from foreign sources by US residents -Financial Capital - -The money used to buy the tools and equipment used in production -Loanable Funds Model - -Relates nominal intere