--%>

Balance of payments deficit or surplus

Describe how country may run an overall balance of payments deficit or surplus.

E

Expert

Verified

A country can run this BOP deficit or surplus by getting involved in official reserve transactions. Such as, an overall BOP deficit may be supported by drawing down the reserve holdings of the central bank. Similarly, overall BOP surplus may be engrossed through addition to the central bank’s reserve holdings.

   Related Questions in Financial Accounting

  • Q : Implications of fixed and flexible

    Explain “balance of payments” identity and discuss some of its implications under the fixed and flexible exchange rate regimes.

  • Q : Dimensions of Creativity What are the

    What are the dimensions of creativity in the Creative Field ?  

  • Q : Interbank currency trading Explain, why

    Explain, why do most interbank currency trading globally include the U.S. dollar?

  • Q : Imports and exports of U.S Give some

    Give some remark over the given statement: “As imports of the U.S. is more than its exports, it is essential for U.S. to import the capital from foreign countries in order to finance its current account deficits.”

  • Q : Stages in the life cycle of a family

    There are seven typical stages in the life cycle of a family with children. Fully explain and give an example to describe each of those seven stages.

  • Q : Commercial bank problems Select the

    Select the right answer of the question. Assume that, for every 1-percentage point decline of the discount rate, commercial banks collectively borrow an additional $2 billion from Federal Reserve banks. Also suppose that reserve ratio is 20 percent. If the Fed incre

  • Q : Prepare the journal entry to record the

    The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December 31, 20x6: Age Balance % uncollectible 0-30 days $674,000 0.5% 31-60 days 186,000 1.2% <

  • Q : Matlab Applications in Communication

    Communication system is the discipline in engineering curriculum which is more of the conceptual rather than theoretical. Mainly student faces trouble in understanding the core concepts of this topic. We have team of highly competent and prac

  • Q : What is Freight-in What is Freight-in

    What is Freight-in and what are its conditions?

  • Q : Digital Image Processing Homework Using

    I am just trying your services to get one very small project done for Digital Image Processing Homework Using Matlab.I need the code and the approach of the code.The Homework is :A. Import a color image.B. Convert color image to gray-level image.C. create