Deficits
Chapter
25
The
Balance
of
Payments,
Exchange
Rates,
and
Trade
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LO1
International
Transactions
International
trade
Buy/sell
current
goods
or
services
Imports
and
exports
International
asset
transactions
Buy/sell
real
or
financial
assets
Buy
stock
Sell
your
house
to
a
foreigner
Requires
currency
exchange
LO1
25-2
LO2
Balance
of
Payments
Sum
of
international
financial
transactions
Current
account
Balance
on
goods
and
services
Net
investment
income
Net
transfers
Balance
on
current
account
LO2
25-3