--%>

How Balance of payments always balances

Balance of payments (BOP) always balances. Describe it.

Answer: Balance of payments is for all time balanced. The negative balance on current account is equated with positive balance in capital account. The monetary authorities might finance a deficit by depleting their reserves of foreign currencies or through borrowing from the IMF and so on. Therefore BOP is forever in balance.

   Related Questions in International Economics

  • Q : Define balance of payment or BOP

    Balance of payment: It is a systematic record of each and every economic transaction of a country with the rest of world in an accounting year.

  • Q : Circular Flow model of a private economy

    The simple circular flow model of a private economy describes how income and resources flow among: (1) Households and business associations. (2) Corporations and government agencies. (3) Sole corporations and proprietorship (4) Business associations a

  • Q : International portfolio investments 5.

    5. What are the factors responsible for the recent surge in international portfolio investment?

  • Q : Techniques what are the techniques of

    what are the techniques of balance of payment?

  • Q : Write short notes on autonomous

    distinguish between autonomous transactions and accommodating transactions under balance of payments

  • Q : Manegment . In 2007 and 2008 Boeing ran

    . In 2007 and 2008 Boeing ran into several publicized issues with regard to its management of a globally dispersed supply chain. What are the causes of these problems? What can a company such as Boeing do to make sure such problems do not occur in the future?

  • Q : Rise in the exchange rate-always good

    ‘The pound has enhanced today on the foreign exchange market’ is a general media comment whenever the pound sterling appreciates. When the pound appreciates is it always excellent news for business and the economy?’

  • Q : Accounts in Balance of Payments or BOP

    Name the accounts in the balance of payments (BOP)? Answer: a. Current account: It exhibits the imports and exports of services and goods and transfer payments.b. Capital Account: It exhibits the assets and li

  • Q : Wars that have an impact on Global

    The professor wants to narrow it down to one or two wars that have affect global economies.

  • Q : Who was 1970 Nobel Laureate in Economics

    Who was 1970 Nobel Laureate in Economics?