Current account of the balance of payments
6.4What the syllabus asks of you
- Structure of the current account of the balance of payments: components of the current account of the balance of payments: trade in goods; trade in services; primary income; secondary income
- Structure of the current account of the balance of payments: calculation of deficits and surpluses on the current account of the balance of payments and its component sections
- Causes of current account deficit and surplus: reasons for current account deficits and surpluses
- Consequences of current account deficit and surplus: impact on GDP, employment, inflation and foreign exchange rate
- Policies to achieve balance of payments stability: the range of policies available to achieve balance of payments stability and their effectiveness Faculty feedback: ‘Understanding how and why our climate is changing and providing the knowledge and skills to explore the challenges plays a key role in every student’s education.’ Feedback from: Dr Amy Munro-Faure, Head of Education and Student Engagement of Cambridge Zero
Read the notes first
Chapter 6: Current account of the balance of payments
Drill this topic
Every question on Current account of the balance of payments, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
47 questions
1May / June 2026 · Paper 11 · Q30Show mark scheme →
A+$1 billion
B–$4 billion
C–$7 billion
D–$15 billion
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2May / June 2026 · Paper 12 · Q30Show mark scheme →
Aeconomic growth
Bexchange rate
Cmoney supply
Dunemployment rate
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3Oct / Nov 2025 · Paper 12 · Q30Show mark scheme →
Aincrease subsidies on exports
Bincrease taxes on its exports
Cremove an embargo on imports
Dremove tariffs on its imports
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4Oct / Nov 2025 · Paper 13 · Q30Show mark scheme →
Aincreasing the value of the foreign exchange rate
Bincreasing training for workers in export industries
Creducing subsidies to domestic export industries
Dreducing tariffs on imported goods and services
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5May / June 2025 · Paper 11 · Q30Show mark scheme →
Adecreased by $10m
Bdecreased by $20m
Cincreased by $20m
Dincreased by $30m
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6May / June 2025 · Paper 12 · Q30Show mark scheme →
Aa decrease in GDP
Ba decrease in unemployment
Ca depreciation of the foreign exchange rate
Ddeflation
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7Oct / Nov 2024 · Paper 12 · Q30Show mark scheme →
A1 and 2
B2 and 3
C3 and 4
D4 and 5
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8Oct / Nov 2024 · Paper 13 · Q30Show mark scheme →
A$50m
B$100m
C$200m
D$350m
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9May / June 2024 · Paper 11 · Q30Show mark scheme →
Adepreciate Brazil's currency
Breduce rates of income tax in Brazil
Creduce subsidies to Brazil's exporting firms
Dreduce tariffs on Brazil's imports
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10May / June 2024 · Paper 12 · Q30Show mark scheme →
Abalance of goods
Bbalance of primary income
Cbalance of secondary income
Dbalance of services
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11Oct / Nov 2023 · Paper 12 · Q30Show mark scheme →
Aprimary income
Bsecondary income
Ctrade in goods
Dtrade in services
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12May / June 2023 · Paper 11 · Q30Show mark scheme →
Adecrease the level of subsidies to domestic producers
Bincrease infrastructure spending to increase domestic productivity
Cincrease interest rates
Dremove import tariffs
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13May / June 2023 · Paper 12 · Q27Show mark scheme →
Aa deficit of $7 million
Ba deficit of $13 million
Ca surplus of $7 million
Da surplus of $13 million
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14May / June 2023 · Paper 12 · Q30Show mark scheme →
Alowering import quotas
Blowering income tax
Clowering import tariffs
Dlowering export subsidies
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15Oct / Nov 2022 · Paper 12 · Q27Show mark scheme →
Aa deficit of $60 million
Ba deficit of $160 million
Ca surplus of $20 million
Da surplus of $760 million
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16Oct / Nov 2022 · Paper 12 · Q28Show mark scheme →
A
B
C
D
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17Oct / Nov 2022 · Paper 13 · Q27Show mark scheme →
Aa deficit of $60 million
Ba deficit of $160 million
Ca surplus of $20 million
Da surplus of $760 million
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18Oct / Nov 2022 · Paper 13 · Q28Show mark scheme →
Atrade in goods — credit
Btrade in services — credit
Ctrade in services — debit
Dcurrent transfers — debit
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19Oct / Nov 2021 · Paper 12 · Q28Show mark scheme →
AIt experienced a falling surplus.
BIt experienced a rising deficit.
CIt moved from deficit to surplus.
DIt moved from surplus to deficit.
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20Oct / Nov 2021 · Paper 13 · Q28Show mark scheme →
AIt experienced a falling surplus.
BIt experienced a rising deficit.
CIt moved from deficit to surplus.
DIt moved from surplus to deficit.
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21May / June 2021 · Paper 11 · Q30Show mark scheme →
Aincreased exports of its services
Bincreased international competitiveness of its goods
Cincreased numbers of visitors from abroad
Dincreased spending on its military bases abroad
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22May / June 2021 · Paper 12 · Q30Show mark scheme →
Aincreased exports of its services
Bincreased international competitiveness of its goods
Cincreased numbers of visitors from abroad
Dincreased spending on its military bases abroad
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23Oct / Nov 2020 · Paper 12 · Q28Show mark scheme →
Aabolish an import quota
Bincrease import tariffs
Cremove export subsidies
Dtax export producers
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24Oct / Nov 2020 · Paper 12 · Q29Show mark scheme →
Aa deficit of $7 million
Ba deficit of $13 million
Ca surplus of $7 million
Da surplus of $13 million
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25Oct / Nov 2020 · Paper 12 · Q30Show mark scheme →
A1 and 2
B2 and 3
C3 and 4
D4 and 5
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26Oct / Nov 2020 · Paper 13 · Q27Show mark scheme →
Adividends earned from a firm in another country
Bimports of TVs from another country
Cpurchase of a house in another country
Drents paid to owners of land in another country
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27Oct / Nov 2020 · Paper 13 · Q30Show mark scheme →
A1 and 2
B2 and 3
C3 and 4
D4 and 5
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28May / June 2020 · Paper 11 · Q29Show mark scheme →
Aall government income and expenditure
Bmoney withdrawn from a bank account
Cinvestments in other countries by manufacturers
Dtrade in goods and services
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29May / June 2020 · Paper 11 · Q30Show mark scheme →
Abalance of goods
Bbalance of services
Cbalance of primary income
Dbalance of secondary income
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30May / June 2020 · Paper 12 · Q30Show mark scheme →
Abalance of goods
Bbalance of services
Cbalance of primary income
Dbalance of secondary income
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31Oct / Nov 2019 · Paper 12 · Q27Show mark scheme →
AA Kenyan company wins a contract to transport exports from Uganda.
BA Kenyan tea company increases its exports.
CA Kenyan trade delegation promoting coffee sales visits India.
DA Zambian company increases its exports to Kenya.
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32Oct / Nov 2019 · Paper 12 · Q29Show mark scheme →
Aa fall in foreign direct investment into the country
Ba fall in interest earned on overseas investment by the country
Ca fall in the value of imported manufactured goods into the country
Da rise in the revenue earned from tourism in the country
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33Oct / Nov 2019 · Paper 13 · Q27Show mark scheme →
AA Kenyan company wins a contract to transport exports from Uganda.
BA Kenyan tea company increases its exports.
CA Kenyan trade delegation promoting coffee sales visits India.
DA Zambian company increases its exports to Kenya.
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34Oct / Nov 2018 · Paper 12 · Q27Show mark scheme →
Aa depreciation of Brazil's currency
Ba fall in Brazil's rate of inflation
Can increase in the Brazilian government's budget deficit
Da reduction in Brazil's deficit on the current account of its balance of payments
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35Oct / Nov 2018 · Paper 12 · Q28Show mark scheme →
ASouth Korea's imports of goods will decrease.
BSouth Korea's investment income will increase.
CSwitzerland's trade balance in goods will worsen.
DSwitzerland's trade balance in services will improve.
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36Oct / Nov 2018 · Paper 13 · Q28Show mark scheme →
ASouth Korea's imports of goods will decrease.
BSouth Korea's investment income will increase.
CSwitzerland's trade balance in goods will worsen.
DSwitzerland's trade balance in services will improve.
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37Oct / Nov 2018 · Paper 13 · Q29Show mark scheme →
Adeficit, improving
Bdeficit, worsening
Csurplus, improving
Dsurplus, worsening
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38May / June 2018 · Paper 11 · Q28Show mark scheme →
Aexport trade in goods
Bexport trade in services
Cimport trade in goods
Dimport trade in services
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39May / June 2018 · Paper 12 · Q28Show mark scheme →
Aexport trade in goods
Bexport trade in services
Cimport trade in goods
Dimport trade in services
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40Oct / Nov 2017 · Paper 12 · Q29Show mark scheme →
Aa protectionist policy
Ba strong exchange rate
Cincreased private sector spending
Dinvestment in the US by multinational firms
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41Oct / Nov 2017 · Paper 13 · Q29Show mark scheme →
Anet income: deficit of $20 billion; net transfers: surplus of $120 billion
Bnet income: deficit of $30 billion; net transfers: deficit of $70 billion
Cnet income: surplus of $35 billion; net transfers: surplus of $15 billion
Dnet income: surplus of $40 billion; net transfers: deficit of $90 billion
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42May / June 2017 · Paper 11 · Q29Show mark scheme →
Aincreased competitiveness of goods made in the US
Bincreased earnings by US investors in foreign companies
Cincreased numbers of overseas visitors to the US
Dincreased spending on US military bases abroad
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43May / June 2017 · Paper 12 · Q30Show mark scheme →
AThe average price of its goods imported exceeded the average price of its goods exported.
BThe average value of its goods exported exceeded the average value of its goods imported.
CThe country had a deficit on its trade in services.
DThe country’s government imposed tariffs on imports.
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44Oct / Nov 2016 · Paper 12 · Q30Show mark scheme →
Abalance of current transfers
Bbalance of goods
Cbalance of income
Dbalance of services
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45May / June 2016 · Paper 11 · Q27Show mark scheme →
Aincreased purchases of coffee from Kenya
Bincreased transport of Mauritian goods in Greek ships
Cincreased spending by Mauritians on holidays in South Africa
Dincreased spending by tourists in Mauritian hotels
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46May / June 2016 · Paper 11 · Q30Show mark scheme →
Aa credit on the goods and services account for Germany
Ba debit on the goods and services account for Japan
Ca 10% fall in the balance of the goods and services account for India
Da 10% rise in the balance of goods and services account for the UK
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47May / June 2016 · Paper 12 · Q27Show mark scheme →
Aincreased purchases of coffee from Kenya
Bincreased transport of Mauritian goods in Greek ships
Cincreased spending by Mauritians on holidays in South Africa
Dincreased spending by tourists in Mauritian hotels
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