Macro Economics

1. A countryдЫЄs transactions with the rest of the world, including both trade flows and financial flows, are summarized by a set of accounts called the balance of payments. The sum of net payments to and from the world is known as the current account. The summary of a countryдЫЄs asset transactions (mainly financial) with the rest of the world is known as the capital account (Blanchard, 2010) .The balance of trade is the difference between the exports and imports of a country.