Balance Of Payments

Definition of Balance of defrayals: [pic] Standard Definition:[1] A regular record of a nations total compensations to foreign countries, including the wrong of imports and the give-and-take leak of capital and gold, along with the total receipts from abroad, including the price of exports and the inflow of capital and gold. IMF definition The balance of payments is a statistical statement that summarizes proceeding betwixt residents and nonresidents during a period. Characteristics of balance of payment It is an accounting record of all monetary proceeding between a state of matter and the stand-in of the world. The BOP summarizes international transactions for a specific period, usually a year. It is prepared in a single currency, typically the domestic currency for the country concerned. It reflects all payments and liabilities to foreigners (debits) and all payments and obligations have from foreigners (credits) Balance of payments is one of the major(ip) indicators of a countrys status in international trade. Components of Balance of Payment (BOP) new Account: a. Goods and work account b. Income account c. Current transfers account Capital Account: a. Capital Transfers b. Long bound Loans c.

Short Term Loans d. Reserves Current Account: a. Goods & campaigning: It covers swi tch trade & services. 1. Mercha! ndise Trade: It records the value of exports and imports, of indubitable goods. 2. Services: it consists of the purchase and sale of: ? Communication services ? locution services ? Insurance services ? fiscal services ? calculator and information services Income Account: It encompasses the...If you want to get a full essay, order it on our website: BestEssayCheap.com

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