--%>
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 : 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 : Problem regarding Comparative advantage

    Assume that El Salvador can generate coffee at lower opportunity costs than Spain, whereas Spain can generate olive oil at lower opportunity costs than El Salvador. The citizens of both countries can potentially profit from international trade since of the efficiency

    		•
  • 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 : Survey regarding Trade policy Find a

    Find a recent survey about a trade policy issue and assess it, examining the structure of the questions and the target audience. Verify the sample size, assess the methods used to administer the survey and analyze results, identifying the confidence around the results

    		•
  • Q : International product life cycle I NEED

    I NEED TO UNDERSTAND MORE ABOUT International product life cycle

    		•
  • Q : What is managed floating exchange rate

    Managed floating exchange rate: This is a system in which the central bank or Government permits the exchange rate to identify market forces although they take decisions to intervene whenever they feel it suitable.

    		•
  • Q : Explain all the approaches of Paul

    Explain all the approaches of Paul Samuelson.

    		•
  • Q : Tourism services to tourist-Balance of

    In which account of balance of payment tourism services to tourist are involved? Answer: Tourism services to tourist are comprised in current account of Balance of

    		•
  • Q : Who explained micro and macro economics

    Who explained micro and macro economics?

    		•
  • Q : Problems suppose that an investor has

    suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%

    		•