Unit 4: The Global Economy

Topic 4.6: Balance of Payments Questions

Practice 20 exam-style questions for IB Economics Topic 4.6. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.

11 mark
The current account of the balance of payments records:
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21 mark
The current account of the balance of payments records:
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31 mark
The balance of payments must always:
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41 mark
Which of the following would be recorded as a credit (positive entry) on the current account?
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54 marks
Explain two causes of a current account deficit.
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64 marks
Outline the main components of the current account of the balance of payments.
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74 marks
Distinguish between the current account and the financial account of the balance of payments.
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81 mark
Which of the following policies could help reduce a current account deficit?
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91 mark
A cause of a current account deficit could be:
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104 marks
Explain how a depreciation of the exchange rate could be used to correct a current account deficit.
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114 marks
Outline two supply-side policies that could help improve a country's current account balance.
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121 mark
Foreign direct investment (FDI) by a multinational company would be recorded in which account of the balance of payments?
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131 mark
The balance of payments must always:
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141 mark
Which of the following would be recorded as a credit (positive entry) on the current account?
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154 marks
Outline the main components of the current account of the balance of payments.
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164 marks
Distinguish between the current account and the financial account of the balance of payments.
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174 marks
Give two examples of transactions that would be recorded as debits on the current account.
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184 marks
Explain two causes of a current account deficit.
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191 mark
Which of the following policies could help reduce a current account deficit?
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201 mark
A cause of a current account deficit could be:
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