1. The balance of payments is a set of accounts that must adhere to generally accepted accounting principles (GAAP). It is also an economic measurement of cross-border transactions that take place in various markets in which the principles of supply, demand and equilibrium hold sway. Explain from both perspectives why the balance of payments must always net out to zero.

2. What goes into a nation's true measure of its wealth? Explain why capital equipment counts but stocks and bonds and CDs don't.