Wednesday April 3

New Concepts:

• Balance of Payments Problems
• What is the capital account?
• How do we balance the current and capital accounts?
• Current Account deficit/surplus and impact on trade

Activity:

• Go over Homework - Imbalance of Payments  
• Answers to Homework - Imbalance of Payments Key

Resources:
Khan Academy Video - What is the Current Account?

     Describes what is in the Current Account and how we calculate a deficit or surplus

Khan Academy Video - What is the Capital Account?

      Describes the Capital account and how we calculate a deficit or surplus

Khan Academy Video - Why Current and Capital Accounts net out?

Power Point - Balance of Payments

Khan Academy Video - Accumulating Foreign Currency Reserves

Khan Academy Video - Using Foreign Currency Reserves to Stabilize Exchange Rates

Homework:
End of Chapter Review - Do questions 1 and 2 only