--%>
Assignment Help - homework help

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 : What is Flexible exchange rate system

    Flexible (or floating) exchange rate system: This is a system in which exchange rate is found out by forces of demand and supply of the foreign currencies concerned in the foreign exchange market. There is no official interference in the foreign excha

    		•
  • Q : Indian economic what are the key

    what are the key callenges to indian economic development

    		•
  • Q : Problem on International trade economy

    If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii

    		•
  • Q : Must home production be defended to

    Examining US–Canadian imports-exports and analyzing a call to protect the US lumber business.

    		•
  • Q : Need of foreign currency Why foreign

    Why foreign currency or exchange is required? Answer: a) To buy services and goods from other countries. b) To send a gift abroad. c) To buy financial assets in a specific country and d) To contem

    		•
  • Q : Supply of foreign exchange Explain how

    Explain how foreign exchange rate is determined beneath flexible exchange rate system. Beneath flexible exchange rate system, the equilibrium exchange rate is found out where demand for foreign exchange is equival

    		•
  • Q : Who was 1970 Nobel Laureate in Economics

    Who was 1970 Nobel Laureate in Economics?

    		•
  • Q : LORENZ CURVE THE AREA BETWEEN THE

    THE AREA BETWEEN THE LORENZ CURVE OF A COUNTRY AND THE DIAGONAL OF PERFECT EQUALITY REPRESENT

    		•
  • Q : Describe the two sources of supply of

    Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.

    		•
  • Q : Problem related to Capitalism leisure

    The French phrase ‘laissez-faire’ almost translates as: (1) Enjoy your leisure. (2) Let the buyer be cautious. (3) All other things held steady. (4) Leave us alone. (5) Labor is a source of all the value.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1448063 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1938121
    Asked

    3,689

    Active Tutors

    1448063

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment
    Home | Company Overview | Services | Discover Q&A | Sitemap | Contact Us | T & C | Refund Policy | Copyright Policy | Blog | Q&A | Directory

    ©TutorsGlobe All rights reserved 2022-2023.