Economics: Factors Influencing Petrol and Diesel Prices

The current account records visible and invisible transactions, while the capital account records loans, investments, and reserve management.

A favorable balance of trade occurs when a country exports more than it imports, resulting in a surplus in the current account.

Aggregate Saving = National Saving + Private Saving + Government Saving

<p>Unilateral transfers refer to one-sided transfers of funds between nations, and they are recorded in the current account.</p> Signup and view all the answers

<p>The overall balance is the sum of the current and capital accounts. If the overall balance is positive, the country has a surplus, and if it is negative, the country has a deficit.</p> Signup and view all the answers

<p>An unfavorable balance of trade occurs when a country imports more than it exports, resulting in a deficit in the current account.</p> Signup and view all the answers

<p>It reflects the country's transactions related to goods and services, income, and unilateral transfers.</p> Signup and view all the answers

<p>It represents the difference between the income earned by a country's residents from abroad and the income paid to foreign residents.</p> Signup and view all the answers

<p>It records transactions related to the acquisition and disposal of assets, such as foreign direct investment and portfolio investment.</p> Signup and view all the answers

<p>Double-entry bookkeeping</p> Signup and view all the answers

<p>Aggregate saving equals investment in a closed economy, as saving is used to finance investment.</p> Signup and view all the answers

<p>One-sided transfers of funds between nations, such as aid, pension payments, and remittances</p> Signup and view all the answers

<p>It reflects the difference between a country's exports and imports of goods and services.</p> Signup and view all the answers

<p>Current Account + Capital Account + Financial Account = 0</p> Signup and view all the answers

<p>It influences the country's economic growth, employment, and standard of living, as well as its balance of payments.</p> Signup and view all the answers

<p>The net flow of goods, services, and income</p> Signup and view all the answers

<p>The net flow of financial assets</p> Signup and view all the answers

<p>Any deficit in the current account is offset by a surplus in the capital or financial account</p> Signup and view all the answers