Topic Three (8.3): The Balance of Payments

In this topic you will study the following:

• Current account of the balance of payments.
• Deficits and surpluses.
• Government policies to achieve stability.

 Reading

For this topic you will need to work through pages 222-228 in your course book.

 Key Points

• Please pay attention to how to measure trade, in terms of the Balance of Payments and the accounts that make up the Balance of Payments. You will concentrate on the Current Account.
• You will need to understand how deficits and surpluses arise, and finish by examining how and why governments try to achieve stability on the Balance of Payments.

 Links

Please watch the following video on balance of payments:

WATCH - Balance of Payments (Khan Academy) Links to an external site. 

 Quiz

Now that you have completed all the topics, it is time to check your understanding by taking the multiple-choice quiz. You must pass this quiz before moving on to the next Module. Remember you can do the quiz as many times as you want to practice and learn. Use it as an opportunity to test yourself!

 Assignment

When you are fully prepared, feel confident with the material and have passed the quiz, you should complete Assignment Eight and submit it to your tutor via Canvas for marking and feedback.