Balance of Payments (Theme 4) — Edexcel Past Paper Questions

In 2021 Brazil’s current account deficit on the balance of payments was US$46.12 billion. The Central Bank of Brazil intervened to sell its own currency, the real, on September 23rd 2022. This was the first time it has intervened in foreign currency markets since December 2021. Evaluate macroeconomic policies that could be used to reduce a current account deficit. Refer to a country of your choice in your answer.

One of two options in Section C — candidates answered this or the other.

4.1.7 Balance of Payments

Since mid-2015 the euro has appreciated. Assess the likely impact of an appreciation of the euro on the current account of the balance of payments for Eurozone countries.

4.1.8 Exchange Rates · 4.1.7 Balance of Payments