--%>

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 : Credit Claims How to handle the Credit

    How to handle the Credit Claims?

  • Q : Investment approach of Warren Buffet

    Investment approach of Warren Buffet: According to Benjamin Graham, the father of securities analysis, value investment was the only form of investment which means that purchasing a stock at less than its intrinsic

  • Q : What is Assets in Accounting Assets are

    Assets are those resources that the business owns. Assets are the things of value owned which enable the firm to get cash or befit in future. There are mainly two types of assets: - Current assets & Fixed assets for e.g. cash, f

  • Q : Define Liabilities Liabilities mean the

    Liabilities mean the amount which the firm owes to the outsiders. Liabilities are of two types: -Long term liabilities & Short term liabilities. Examples of long term liabilities are long terms loans, bonds etc. & examples of short term liabil

  • Q : Prepare the journal entry to record the

    On December 31, 20x1, the Kat Co. purchase a group of four assets for a total cost of $1,000,000. An independent appraiser assesses the fair value of each asset asfollows: Asset Fair Value Land $350,000 Building 600,000 Equipment 200,000 Fixtures 150,000 Prepare the journal entry t

  • Q : Computing cross-rate matrix Compute

    Compute cross-rate matrix for French franc, Japanese yen, German mark, and the British pound. Utilize most recent European term quotes in order to compute the cross-rates in order that the triangular matrix result is same as that of the portion above diagonal in Exhib

  • Q : What is Treasury bills What is Treasury

    What is Treasury bills? What did they do?

  • Q : Case study of gene expression analysis

    The paper by Golub et al. that was the focus of the second part of the BioConductor practical was the first analysis of its kind, demonstrating that gene expression analysis could potentially be used to classify leukaemia sub-types. Since its publication in 1999 there

  • Q : Essential condition for

    Specify the essential condition for the fixed-for-floating interest rate swap to be possible?

  • Q : Segmented and Integrated capital markets

    Explain how cost of the capital is computed in the segmented vs. integrated capital markets.