What is the balance of payments?
The current account
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The capital (financial) account
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The balance: current + capital = 0
Worked example
Debits and credits
Why the BOP always balances
Key relationships
AP Exam Tips
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Common Mistakes
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Unit 6 topics
Unit 6 overview6.1Balance of Payments Accounts6.10Economic Integration and Trade Agreements6.2Exchange Rates6.3The Foreign Exchange Market6.4Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market6.5Changes in the Foreign Exchange Market and Net Exports6.6Real Interest Rates and International Capital Flows6.7The Effect of Trade Policies6.8Fiscal and Monetary Policies in Open Economies6.9Exchange Rate Regimes