Balance of Payment (BOP): It is an account of what is received by the resident of the country from the rest of world and what these residents have paid out to other countries on the account of sale of goods, services and other invisible items as well as on the account of capital transfers from other countries. It is divided into two accounts. Current Account: It maintains all the transactions related to the exchange of goods and services and unilateral transfers. It includes shipping insurance and banking services, investment income, foreign travel, transfer payments and balance of trade . Financial Account: It provides the details of all the capital transfers such as investment and loans between one country and the rest of the world. Some components are banking capital, official capital, private capital, gold and foreign capital. Change in the balance of payments on the current and financial accounts.

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 18, Problem 1P

To determine

Balance of Payment (BOP):

It is an account of what is received by the resident of the country from the rest of world and what these residents have paid out to other countries on the account of sale of goods, services and other invisible items as well as on the account of capital transfers from other countries. It is divided into two accounts.

Current Account:

It maintains all the transactions related to the exchange of goods and services and unilateral transfers. It includes shipping insurance and banking services, investment income, foreign travel, transfer payments and balance of trade.

Financial Account:

It provides the details of all the capital transfers such as investment and loans between one country and the rest of the world. Some components are banking capital, official capital, private capital, gold and foreign capital.

Change in the balance of payments on the current and financial accounts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 2

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 18, Problem 1P

To determine

Balance of Payment (BOP):

It is an account of what is received by the resident of the country from the rest of world and what these residents have paid out to other countries on the account of sale of goods, services and other invisible items as well as on the account of capital transfers from other countries. It is divided into two accounts.

Current Account:

It maintains all the transactions related to the exchange of goods and services and unilateral transfers. It includes shipping insurance and banking services, investment income, foreign travel, transfer payments and balance of trade.

Financial Account:

It provides the details of all the capital transfers such as investment and loans between one country and the rest of the world. Some components are banking capital, official capital, private capital, gold and foreign capital.

Change in the balance of payments on the current and financial accounts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 18, Problem 1P

To determine

Balance of Payment (BOP):

It is an account of what is received by the resident of the country from the rest of world and what these residents have paid out to other countries on the account of sale of goods, services and other invisible items as well as on the account of capital transfers from other countries. It is divided into two accounts.

Current Account:

It maintains all the transactions related to the exchange of goods and services and unilateral transfers. It includes shipping insurance and banking services, investment income, foreign travel, transfer payments and balance of trade.

Financial Account:

It provides the details of all the capital transfers such as investment and loans between one country and the rest of the world. Some components are banking capital, official capital, private capital, gold and foreign capital.

Change in the balance of payments on the current and financial accounts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 18, Problem 1P

To determine