Current Account
Definition
The current account is a component of a country's balance of payments that records the transactions related to the export and import of goods and services, income receipts, and unilateral transfers.
Analogy
Think of the current account as a financial diary that keeps track of all the money coming in and going out of a country. It includes everything from selling products to other countries, receiving income from foreign investments, and even gifts or aid given to other nations.
Related terms
Balance of Payments: A record of all economic transactions between one country and the rest of the world over a specific period.
Trade Balance: The difference between a country's exports and imports of goods.
Services Trade: The exchange of intangible products such as tourism, transportation, or consulting between countries.
"Current Account" appears in:
Additional resources (1)
Are you a college student?
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.