What is the concept of the current account?

Economics Aggregate Demand And Supply Questions



80 Short 63 Medium 46 Long Answer Questions Question Index

What is the concept of the current account?

The concept of the current account refers to the measurement of a country's international trade and financial transactions with the rest of the world over a specific period of time, typically a year. It includes the balance of trade (exports minus imports of goods and services), net income from abroad (such as interest, dividends, and wages), and net transfers (such as foreign aid and remittances). The current account is an important indicator of a country's economic health and its relationship with the global economy.