'Describe the relationship between the two components of the Balance of Payments'

The Balance of Payments is a summarized recording of all transactions between Australia and the rest of the world of a given period of time, essentially it illustrates the trade and money flows in and out of Australia's economy. For ease of identification and analysis, the Balance of Payments is separated into two separate components namely the, Current Account and the Capital and Financial account which deal separately with certain aspects of Australia's international public …

…just putting this in to see how thoroughly things are checked. links that can be drawn between the two components and three resulting sub categories of the Balance of Payments and allows economists to examine and amend various issues that become apparent in the record of Australia's international transactions. The Government places great importance on the Balance of Payments data as it is a direct and straightforward analysis of Australia's performance at home and abroad.