| Lesson Plan |
| Grade: |
Date: 25/02/2026 |
| Subject: Economics |
| Lesson Topic: components of the balance of payments accounts: current account, financial account and capital account |
Learning Objective/s:
- Describe the three components of the Balance of Payments (current, financial, capital) and their key transactions.
- Analyse how exchange‑rate, fiscal, monetary and trade policies influence each BoP account.
- Evaluate the effectiveness and potential side‑effects of policy tools for correcting a BoP disequilibrium.
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Materials Needed:
- Projector and screen for slides/diagrams
- Whiteboard and markers
- Handout summarising BoP accounts and policy tools
- Worksheet with case‑study data for group analysis
- Calculator (optional) for elasticity calculations
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Introduction:
Begin with a quick poll: “Which account do you think most influences a country’s trade balance?” Review prior knowledge of exports and imports, then outline that today’s success criteria are to identify each BoP component and explain how policy can restore equilibrium.
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Lesson Structure:
- Do‑now (5’) – Students match a list of transactions to the correct BoP account using sticky notes on the board.
- Mini‑lecture (10’) – Present the current, financial and capital accounts with a diagram and key examples.
- Policy analysis activity (15’) – In groups, examine a short case where the current account is in deficit; decide on a policy mix and justify using the Marshall‑Lerner condition.
- Whole‑class debrief (10’) – Groups share recommendations; teacher highlights interactions between accounts.
- Quick check (5’) – Exit ticket: write one policy and its likely impact on each BoP component.
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Conclusion:
Summarise how each policy tool targets a specific BoP account and why side‑effects must be considered. Collect exit tickets and assign homework to research a recent real‑world BoP adjustment and prepare a brief report.
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