Summary Best for understanding fundamental macro economics

Balance
of




payments
The balance of payments is a
record of financial transaction
between one country and the rest
of the world
the two of account the
types in
balance of payments consist of
the current account
financial capital account


The current account
trade in goods
trade in services
investment income

, current transfers


Trade in goods
the imports export of tangiable
goods

Trade in services
the import or exports of
Services
they are not tangiable

Investment income
income earned on investments
wheather its domesticly or abroad

current transfers
when remitences
enter the Uk from
abrod it
appears as a Rtmitinces
positive on the current account


Always remember it is inflows