DP Economics Questionbank
3.3 The balance of payments
Description
[N/A]Directly related questions
- 20N.3.HL.TZ0.3f: Explain two methods that a government could use to correct a persistent current account deficit.
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20N.2.HL.TZ0.1b:
Using an exchange rate diagram, explain how South Korea’s current account surplus could have “helped increase the South Korean won’s value” (paragraph [2]).
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20N.2.HL.TZ0.1a.ii:
List two components of the financial account (paragraph [4]).
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20N.2.HL.TZ0.2b:
Using price elasticity of demand (PED) data from the text and the J-curve effect, explain the most likely impact of “the falling value of the Australian dollar” on Australia’s current account (paragraph [4]).
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20N.2.HL.TZ0.1d:
Using information from the text/data and your knowledge of economics, discuss the possible implications on South Korea’s economy of a current account surplus.
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16N.2.SL.TZ0.4b:
Using an exchange rate diagram, explain how the large current account deficit may have affected the value of the Ghanaian cedi.
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16N.3.HL.TZ0.2e.ii:
Calculate the current account balance from the data given in Table 1.
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16N.3.HL.TZ0.2e.i:
Using examples from Table 1, outline the difference between debit items and credit items in the balance of payments.
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16N.3.HL.TZ0.2e.iii:
Explain two implications of a rising current account surplus.
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21M.2.SL.TZ0.2a.i:
Define the term current account indicated in bold in the text (paragraph [1]).
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17M.2.SL.TZ0.02a.ii:
Define the term current account indicated in bold in the text (paragraph 1).
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17M.2.HL.TZ0.02a.i:
Define the term current account deficit indicated in bold in the text (paragraph 1).
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17M.3.HL.TZ0.02f.i:
Using the data in Table 1, calculate Alpha’s current account balance for 2016.
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17M.3.HL.TZ0.02f.ii:
Outline how Alpha’s current account balance for 2016 is likely to affect the exchange rate of its currency.
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17M.3.HL.TZ0.02g.ii:
Following the depreciation, it is observed that the current account balance worsens initially, but improves after a certain period of time. Explain why this might be expected to happen.
- 18M.3.HL.TZ0.3f: Distinguish between direct investment and portfolio investment.
- 18M.3.HL.TZ0.3i: The government of Urbania is concerned that the rate of inflation is significantly higher than in...
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18M.3.HL.TZ0.3g.i:
Using the information in Table 5, calculate the financial account balance.
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18M.3.HL.TZ0.3e:
Calculate the value of V (exports of services) for Urbania in 2017.
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18M.3.HL.TZ0.3g.ii:
Using your answer to part (g)(i), calculate the value of W (reserve assets) in Table 5.
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18M.3.HL.TZ0.3h:
Using your answer to part (g)(ii), describe how the level of reserve assets in Urbania changed by the end of 2017.
- 18M.3.HL.TZ0.3j: Outline one method, other than attempting to reduce the value of its currency, which may be used...
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18M.3.HL.TZ0.3k:
Explain how a depreciation of the Urbanian dollar ($) might result in a J-curve effect.
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18N.2.SL.TZ0.1a.ii:
Define the term current account indicated in bold in the text (paragraph [6]).
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19M.2.HL.TZ0.2c:
Explain the difference between a current account deficit and a budget deficit (paragraph [5]).
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19M.2.HL.TZ0.2d:
Using information from the text/data and your knowledge of economics, discuss the effects of the increasing current account deficit on Pakistan’s economy.
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19N.3.HL.TZ0.3a.iv:
Determine the size of Gardia’s current account surplus/deficit when the sum of the financial and capital accounts is US$ 2 billion.
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19N.2.SL.TZ0.2a.ii:
Define the term current account deficit indicated in bold in the text (paragraph [4]).
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19N.3.HL.TZ0.3a.iii:
State two factors that could cause Gardia’s current account to be in deficit, even though its balance of trade in goods is in surplus.
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19N.2.HL.TZ0.2d:
Using information from the text/data and your knowledge of economics, discuss the implications of Turkey’s persistent current account deficit.
Sub sections and their related questions
Current account deficits
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16N.2.SL.TZ0.4b:
Using an exchange rate diagram, explain how the large current account deficit may have affected the value of the Ghanaian cedi.
-
17M.2.HL.TZ0.02a.i:
Define the term current account deficit indicated in bold in the text (paragraph 1).
-
17M.3.HL.TZ0.02g.ii:
Following the depreciation, it is observed that the current account balance worsens initially, but improves after a certain period of time. Explain why this might be expected to happen.
- 18M.3.HL.TZ0.3i: The government of Urbania is concerned that the rate of inflation is significantly higher than in...
- 18M.3.HL.TZ0.3j: Outline one method, other than attempting to reduce the value of its currency, which may be used...
-
18M.3.HL.TZ0.3k:
Explain how a depreciation of the Urbanian dollar ($) might result in a J-curve effect.
-
19M.2.HL.TZ0.2d:
Using information from the text/data and your knowledge of economics, discuss the effects of the increasing current account deficit on Pakistan’s economy.
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19N.2.SL.TZ0.2a.ii:
Define the term current account deficit indicated in bold in the text (paragraph [4]).
-
19N.2.HL.TZ0.2d:
Using information from the text/data and your knowledge of economics, discuss the implications of Turkey’s persistent current account deficit.
- 20N.3.HL.TZ0.3f: Explain two methods that a government could use to correct a persistent current account deficit.
-
20N.2.HL.TZ0.2b:
Using price elasticity of demand (PED) data from the text and the J-curve effect, explain the most likely impact of “the falling value of the Australian dollar” on Australia’s current account (paragraph [4]).
Current account surpluses
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16N.3.HL.TZ0.2e.iii:
Explain two implications of a rising current account surplus.
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17M.3.HL.TZ0.02f.ii:
Outline how Alpha’s current account balance for 2016 is likely to affect the exchange rate of its currency.
-
20N.2.HL.TZ0.1b:
Using an exchange rate diagram, explain how South Korea’s current account surplus could have “helped increase the South Korean won’s value” (paragraph [2]).
-
20N.2.HL.TZ0.1d:
Using information from the text/data and your knowledge of economics, discuss the possible implications on South Korea’s economy of a current account surplus.
The structure of the balance of payments
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16N.3.HL.TZ0.2e.i:
Using examples from Table 1, outline the difference between debit items and credit items in the balance of payments.
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16N.3.HL.TZ0.2e.ii:
Calculate the current account balance from the data given in Table 1.
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17M.2.SL.TZ0.02a.ii:
Define the term current account indicated in bold in the text (paragraph 1).
-
17M.3.HL.TZ0.02f.i:
Using the data in Table 1, calculate Alpha’s current account balance for 2016.
-
18M.3.HL.TZ0.3e:
Calculate the value of V (exports of services) for Urbania in 2017.
- 18M.3.HL.TZ0.3f: Distinguish between direct investment and portfolio investment.
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18M.3.HL.TZ0.3g.i:
Using the information in Table 5, calculate the financial account balance.
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18M.3.HL.TZ0.3g.ii:
Using your answer to part (g)(i), calculate the value of W (reserve assets) in Table 5.
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18M.3.HL.TZ0.3h:
Using your answer to part (g)(ii), describe how the level of reserve assets in Urbania changed by the end of 2017.
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18N.2.SL.TZ0.1a.ii:
Define the term current account indicated in bold in the text (paragraph [6]).
-
19M.2.HL.TZ0.2c:
Explain the difference between a current account deficit and a budget deficit (paragraph [5]).
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19N.3.HL.TZ0.3a.iii:
State two factors that could cause Gardia’s current account to be in deficit, even though its balance of trade in goods is in surplus.
-
19N.3.HL.TZ0.3a.iv:
Determine the size of Gardia’s current account surplus/deficit when the sum of the financial and capital accounts is US$ 2 billion.
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20N.2.HL.TZ0.1a.ii:
List two components of the financial account (paragraph [4]).
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21M.2.SL.TZ0.2a.i:
Define the term current account indicated in bold in the text (paragraph [1]).