... flows. The balance of payments The balance of payments is a record of all economic transactions between Australia and the rest of the world over a given period of time. It is broken into two accounts: * The current account * The capital and finance account The Current account shows all money flow from all exports and imports of goods and services, income and current transfers for a period of time. Net goods - refers to the difference between what Australia receives for its exports and pays out for its imports. Possible outcomes: * Balance - where export receipts = import payouts * Surplus - where exports> imports * Deficit - where imports> exports Net services - refers to service are bought and sold without people receiving a good. The balance of goods and services is an amount that is derived by adding net goods and net services together. Net income - refers to earnings on investment. It covers interest ...

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