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ID number:344322
Evaluation:
Published: 01.12.1996.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

The balance of payments is a record of transactions between a country and the rest of the world. It is broken up into 2 different accounts - the current account and the capital and financial account.
The current account is record of all transactions australia has with other countries with regards to goods/services, the income balance and current transfers.
The income balance refers to profits earned by Australian companies overseas, dividends earned by Australians overseas - which are all credits and the debits are the same payments made to overseas residents in Australia. This is usually the biggest deficit in the current account.

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