A Level · Economics · Chapter 13

Ch 13 Balance of Payments, Exchange Rates and Current Account Policies: complete notes

Neat, exam-ready notebook-style notes for Ch 13 Balance of Payments, Exchange Rates and Current Account Policies, following the Cambridge A Level 9708 syllabus, AS and A Level. This chapter is part of the complete A Level Economics 9708 Complete Notes: All 25 Chapters, AS and A Level (Cambridge 2026–2028).

Free preview: Ch 13 Balance of Payments, Exchange Rates and Current Account Policies notes

A quick look at the chapter from our A Level Economics notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.

Topics in this chapter

1. 6.3.1 Components of the current account
2. 6.3.2 Calculating the balances
3. 6.3.3 Causes of imbalances in the current account
4. 6.3.4 Consequences of current account imbalances
5. 6.4.1–6.4.3 Definition, determination, depreciation and appreciation
6. 6.4.4 Causes of changes in a floating exchange rate
7. 6.4.5 AD/AS analysis of exchange rate changes
8. 6.5.1 The objective of a stable current account
9. 6.5.2 Effect of policies on the current account

“I can” checklist: what you must be able to do

• classify items into the four components
• calculate goods, services and current account balances
• explain causes of deficits and surpluses
• assess the consequences of imbalances
• draw a floating exchange rate diagram
• explain causes of depreciation and appreciation
• use AD/AS to show exchange rate effects
• assess policies to correct the current account

What is inside the full chapter notes

• Concept notes, diagrams and 8 worked examples (calculations and model answers)
• Exam skills for Paper 2; common mistakes from the examiner report
• 20 Paper 1 style multiple-choice questions, explained
• One Section A data-response question and one Section C essay (Paper 2 style), with full mark schemes
• Quick-reference table, "I can" checklist

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What you get in the pack

• All 25 chapters of the Cambridge International AS & A Level Economics 9708 syllabus (exams 2026–2028): scarcity and choice, demand and supply, elasticities, government intervention, national income, AD/AS, growth, unemployment and inflation, fiscal, monetary and supply-side policy, trade and the balance of payments, exchange rates, utility and indifference curves, market failure, costs and market structures, labour markets, the multiplier, money and banking, macro policy, development and globalisation
• Every syllabus statement covered in order, each marked AS or A Level, with clear notes, tables and diagrams drawn for these notes
• 8 worked examples in every chapter: calculations and model answers that show how to earn the marks
• Exam skills for every paper (command words, diagrams, how AO1–AO3 marks are earned) and common mistakes taken from Cambridge examiner reports
• 20 multiple-choice questions per chapter with answers and explanations
• Original exam-style data-response questions and essays in the style of Papers 2 and 4, with full levels-based mark schemes (no past-paper reprints)
• Quick-reference sheet and an "I can" checklist at the end of every chapter
• Colour PDF and a black and white copy of every chapter for printing
• Independent notes; not endorsed by or affiliated with Cambridge University Press & Assessment

All chapters in this pack

1. Ch 1 Scarcity, Choice, Methodology and Factors of Production
2. Ch 2 Economic Systems, Production Possibility Curves and Classification of Goods
3. Ch 3 Demand and Supply Curves
4. Ch 4 Price, Income and Cross Elasticity of Demand and Price Elasticity of Supply
5. Ch 5 Market Equilibrium and Consumer and Producer Surplus
6. Ch 6 Government Microeconomic Intervention
7. Ch 7 National Income Statistics and the Circular Flow of Income
8. Ch 8 Aggregate Demand and Aggregate Supply
9. Ch 9 Economic Growth, Unemployment and Price Stability
10. Ch 10 Macroeconomic Objectives and Fiscal Policy
11. Ch 11 Monetary Policy and Supply-side Policy
12. Ch 12 International Trade and Protectionism
13. Ch 13 Balance of Payments, Exchange Rates and Current Account Policies
14. Ch 14 Utility, Indifference Curves and Budget Lines
15. Ch 15 Efficiency, Market Failure and Externalities
16. Ch 16 Costs, Revenue, Profit and Production
17. Ch 17 Market Structures
18. Ch 18 Growth, Survival and Objectives of Firms
19. Ch 19 Government Policies for Efficiency, Equity and Redistribution
20. Ch 20 Labour Markets and Government Intervention
21. Ch 21 The Circular Flow, the Multiplier and Economic Growth and Sustainability
22. Ch 22 Employment, Unemployment, Money and Banking
23. Ch 23 Macroeconomic Policy: Objectives, Links and Effectiveness
24. Ch 24 Balance of Payments Policies and Exchange Rates
25. Ch 25 Economic Development and Globalisation