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Current Account Balance Formula

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Current Account Balance tells us whether the current account is in deficit or surplus (whether it has more credit or debit). Check FAQs

CAB = X - I + NY + NCT

CAB - Current Account Balance?X - Exports?I - Imports?NY - Net Income Abroad?NCT - Net Current Transfers?

Current Account Balance Example

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With units

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Here is how the Current Account Balance equation looks like with Values.

Here is how the Current Account Balance equation looks like with Units.

Here is how the Current Account Balance equation looks like.

220000 = 500000 - 400000 + 20000 + 100000

220000 = 500000 - 400000 + 20000 + 100000

220000 = 500000 - 400000 + 20000 + 100000

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Current Account Balance Solution

Follow our step by step solution on how to calculate Current Account Balance?

FIRST Step Consider the formula

CAB = X - I + NY + NCT

Next Step Substitute values of Variables

∴

CAB = 500000 - 400000 + 20000 + 100000

Next Step Prepare to Evaluate

∴

CAB = 500000 - 400000 + 20000 + 100000

LAST Step Evaluate

∴

CAB = 220000

Current Account Balance Formula Elements

Variables

Current Account Balance

Current Account Balance tells us whether the current account is in deficit or surplus (whether it has more credit or debit).

Symbol: CAB

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Current Account Balance

Exports

Exports are the goods and services that are made in one country and transmitted to foreigners.

Symbol: X

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Exports

Imports

Imports are the goods and services of foreign origin brought into a country.

Symbol: I

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Imports

Net Income Abroad

Net Income Abroad is the difference between the total values of the primary incomes receivable from, and payable to, non-residents.

Symbol: NY

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Net Income Abroad

Net Current Transfers

Net Current Transfers from abroad is equal to the unrequited transfers of income from nonresidents to residents minus the unrequited transfers from residents to nonresidents.

Symbol: NCT

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Net Current Transfers

Other formulas in International Finance category

Go Balance of Financial Account

BOF = NDI + NPI + A + E

Go International Fisher Effect using Interest Rates

ΔE = (\frac{r d - r f}{1 + r f})

Go International Fischer Effect using Spot Rates

ΔE = (\frac{e o}{e t}) - 1

Go Covered Interest Rate Parity

F = (e o) \cdot (\frac{1 + r f}{1 + r d})

How to Evaluate Current Account Balance?

Current Account Balance evaluator uses Current Account Balance = Exports-Imports+Net Income Abroad+Net Current Transfers to evaluate the Current Account Balance, The Current Account Balance is part of a country's financial inflow and outflow record. It is part of the balance of payments, the statement of all transactions made between one country and another. Current Account Balance is denoted by CAB symbol.

How to evaluate Current Account Balance using this online evaluator? To use this online evaluator for Current Account Balance, enter Exports (X), Imports (I), Net Income Abroad (NY) & Net Current Transfers (NCT) and hit the calculate button.

FAQs on Current Account Balance

What is the formula to find Current Account Balance?

The formula of Current Account Balance is expressed as Current Account Balance = Exports-Imports+Net Income Abroad+Net Current Transfers. Here is an example- 220000 = 500000-400000+20000+100000.

How to calculate Current Account Balance?

With Exports (X), Imports (I), Net Income Abroad (NY) & Net Current Transfers (NCT) we can find Current Account Balance using the formula - Current Account Balance = Exports-Imports+Net Income Abroad+Net Current Transfers.

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Current Account Balance Formula

Current Account Balance Example

Current Account Balance Solution

Current Account Balance Formula Elements

Other formulas in International Finance category

How to Evaluate Current Account Balance?

FAQs on Current Account Balance

Variable Name