Balance of payments: Current account | Foreign exchange and trade | Macroeconomics | Khan Academy

Understanding the United States Current Account in 2011

Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course

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[Andrei]

How does this man have so much knowledge in so many different subjects?

[sakibalhasan]

This guy is a genius and his family hailed from a village of the Barisal District 😊 So proud of him 🇧🇩

[erwin]

thanks bro !!! now my level in international eco with gentillu is much better

[ChizzMikNik]

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[dusski]

where did u get that calculator? where and can i get it and do i have to pay? great videos, recently subscribed and it's great to watch these videos :)

[outrageous]

So the net transfers would be seen as an inflow on the current account if the inflows in transfers were greater than outflows? Meaning that the US sends more money in the form of transfers out of the country than they receive? Great vid by the way, THANK YOU SO FREAKING MUCH!

[angelarienagaoka]

What kind of results will occur in relation to the current account balance and foreign currency if exports related to natural resources increase sharply?

[aminathsaeeda]

Could you do one for the receipt and payment account?

[margretmundu]

May you please do a clear video also the writings please thankyou❤

[HotPepperLala]

Our government needs to watch this video lol, maybe they could something from this

[i.emredogan]

I have question : What determines whether a small open economy will have a trade surplus or a trade deficit?
can someone explain please?

[zy]

So essentially current account refers to the balance of direct inbound and outbound payments or transfers

[thomasplanell]

USA having current account deficit means that  $474B dollars have to be traded for their equivalent in one's foreign currency. So Current account deficit lowers USD rate against such foreign currency while a Current Account Surplus would require foreigners to trade their currency for USD in order to honor their payments. Right?

[MorrisMusic]

As a US citizen earning income from my job abroad and I repatriate my earnings back home, is that a credit to the US income account? or to net transfers?

[notyourechochamber]

its amazing how the `dahhlar`still commands respect around the world.

[angelaxu]

Hi your video is really good. What software did you use to make it?

[mre]

I do not get why the BoP has to balance - I'm pretty confused. For instance, let's say NX are positive; that means there is money coming into the economy via Exports (more so than has left through Imports). Why not just spend that money on stuff in our economy? Why does it have to back out through the Capital Account?

[RogueLawyer]

Can someone help me out on this one, it's pretty urgent and I don't have a single idea what it means.

 
For e.g. if say China has a big NX of $5bn (NX>$0), but a small capital account.
Therefore they have a positive BOP of $5bn.
Thus they have a outflow of funds of -$5bn (change in KA is -$5bn to balance the BOP)  
 
1. So what does it mean by a small capital account yet they have a huge outflow of funds (sizeable change in capital account)??
 
2. Won't that means now they have a huge capital account now after the change even if they have a small capital account from the start?

[humaas]

Which balance of payment deals with interest earned or paid on answer...i need it urgently

[bubbles-bsny]

can someone please explain why current account will decrease if inflation is high