AP®︎ Macroeconomics: Topic 6.1 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 6.1 of AP Macroeconomics – Balance of Payments Accounts.
Questions List
Topic 6.1
Question 1 Easy
This question tests the following: MEA-4.A.5
What does the balance of payments account measure?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Macroeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 6.1: Balance of Payments Accounts
Learning Objective: MEA-4.A
a. Define the current account (CA), the capital and financial account (CFA), and the balance of payments (BOP). b. Explain how changes in the components of the CA and CFA affect a country's BOP. c. Calculate the CA, the CFA, and the BOP.
Essential Knowledge: MEA-4.A.1
The current account (CA) records net exports, net income from abroad, and net unilateral transfers.
Essential Knowledge: MEA-4.A.2
The CA is not always balanced; it may show a surplus or a deficit. A nation's balance of trade (i.e., net exports) is part of the current account and may also show a surplus or a deficit.
Essential Knowledge: MEA-4.A.3
The capital and financial account (CFA) records financial capital transfers and purchases and sales of assets between countries.
Essential Knowledge: MEA-4.A.4
The CFA is not always balanced; it may show a surplus (financial capital inflow) or a deficit (financial capital outflow).
Essential Knowledge: MEA-4.A.5
The balance of payments (BOP) is an accounting system that records a country's international transactions for a particular time period. It consists of the CA and the CFA.
Essential Knowledge: MEA-4.A.6
Any transaction that causes money to flow into a country is a credit to its BOP account, and any transaction that causes money to flow out is a debit. The sum of all credit entries should match the sum of all debit entries (CA+CFA=0).
