Balance of payments: Current account | Foreign exchange and trade | Macroeconomics | Khan Academy

Understanding the United States Current Account in 2011 Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/current-capital-account/v/balance-of-payments-capital-account?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/government-spending-and-the-is-lm-model?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

1. The calculation for the current account deficit is wrong
2. Can someone help me out on this one, it's pretty urgent and I don't have a single idea what it means.
   
    
   For e.g. if say China has a big NX of $5bn (NX>$0), but a small capital account.
   Therefore they have a positive BOP of $5bn.
   Thus they have a outflow of funds of -$5bn (change in KA is -$5bn to balance the BOP)  
    
   1. So what does it mean by a small capital account yet they have a huge outflow of funds (sizeable change in capital account)??
    
   2. Won't that means now they have a huge capital account now after the change even if they have a small capital account from the start?
3. I do not get why the BoP has to balance - I'm pretty confused. For instance, let's say NX are positive; that means there is money coming into the economy via Exports (more so than has left through Imports). Why not just spend that money on stuff in our economy? Why does it have to back out through the Capital Account?
4. USA having current account deficit means that  $474B dollars have to be traded for their equivalent in one's foreign currency. So Current account deficit lowers USD rate against such foreign currency while a Current Account Surplus would require foreigners to trade their currency for USD in order to honor their payments. Right?
5. So the net transfers would be seen as an inflow on the current account if the inflows in transfers were greater than outflows? Meaning that the US sends more money in the form of transfers out of the country than they receive? Great vid by the way, THANK YOU SO FREAKING MUCH!
6. THANKYOU
7. As a US citizen earning income from my job abroad and I repatriate my earnings back home, is that a credit to the US income account? or to net transfers?
8. thanks :)
9. A+ keep it up
10. Finally a new video!!!!
11. Thankyou Thankyou Thankyou Thankyou Thankyou Thankyou
12. The calculator he uses is an TI-85 emulator, google it.
13. How do you use this calculator in your computer?
14. where did u get that calculator? where and can i get it and do i have to pay? great videos, recently subscribed and it's great to watch these videos :)
15. Our government needs to watch this video lol, maybe they could something from this
16. first comment and like always i don't know anything of this *sigh*