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Paper 2 · November 2016 · Exchange Rates and International Trade

State the term for a systematic record of all economic transactions between the residents of a country and the rest of the world over a period, usually one year.

Model answer

balance of payments

Also accepted: the balance of payments, balance of payment

Explanation

The balance of payments brings together the current account, covering trade in goods and services and income flows, and the capital and financial accounts, covering movements of assets. Taken as a whole it always balances, so the interest lies in the position of each account within it.

Derived from ZIMSEC Economics 9158/2 Paper 2, November 2016, Q1

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