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Explain Balance on Current Account

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Explain balance on current account.


Definitions:

Island Arc

A curved chain of volcanic islands located at a tectonic plate boundary, typically formed from the subduction of an oceanic plate under another plate.

Mid-Ocean Ridge

A global chain of mountains beneath the sea, created by the movement of Earth's plates.

Andes

A major mountain range in South America, stretching along the western edge of the continent.

Felsic Pyroclastic

Materials produced by explosive volcanic eruptions that are rich in silica and comprise various types of volcanic ash, pumice, and other particles.

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