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Measures to correct the deficit in the balance of payments include deflation, depreciation, and devaluation. In addition, there is exchange control.
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Effect of persistent deficit in balance of payments?
A persistent deficit in the balance of payments leads to an individual not paying their way. Society as a whole can get into a deficit when many people are defaulting on payments.
What is the relationship between the balance of payments BOP and interest rates?
If the interest rate is lower and balance of payment is large then the currant account will be deficit
Why does the balance of payments is always balane even though the balance of trade does not?
the balance of payments defines an economy's account of receipts and payments.it includes all current accounts and capital accounts. a deficit in current account is managed by creating a surplus in capital account and vice-versa.however,balance of trade is just the balance of exports and imports,exports receipts can be greater than import payments,this creates surplus in the economy and deficit in the other case. balance of trade is a component of BOP.
How exchange rate has affected BOP?
If the amount spent on goods and service by UK buyers is greater than the amount received from selling goods and services abroad, the UK will experience a balance of payments deficit (trade deficit). If the reverse occurs then the UK will experience a balance of payments surplus (trade surplus)
What is the relationship between capital account balance and current account balance?
The balance of payments, then, is the sum of the balance on current account and the balance on capital and financial account. It is important to understand that the deficit indicated by the current account is financed through activities recorded on the capital and financial account. The deficit on the current account must be exactly offset by the surplus on the capital and financial account (if it is not, net errors and omissions will correct it). This means then that the sum of the current account and the capital and financial account is equal to zero.
Does Brazil have a balance of payments surplus or deficit?
It has a balance of payments deficit.
Balance of payments deficit?
A balance of payments deficit means there is an imbalance in the balance of payments of a country where the payments the country makes are more than the payments they received. It means the balance of payments is negative. A balance of payments deficit is,when government expenditure is more than government revenue
Effect of persistent deficit in balance of payments?
A persistent deficit in the balance of payments leads to an individual not paying their way. Society as a whole can get into a deficit when many people are defaulting on payments.
Does Germany have a trade deficit?
No, Germany has a balance of payments surplus.
How do you spell deficit?
That is the correct spelling of "deficit" (a shortfall or negative balance).
What has the author Ken Livingstone written?
Ken Livingstone has written: 'The UK balance of payments deficit'
Why does the balance of payments always balance even though the balance of trade does not?
he balance of payments defines an economy's account of receipts and payments.it includes all current accounts and capital accounts. a deficit in current account is managed by creating a surplus in capital account and vice-versa.however,balance of trade is just the balance of exports and imports,exports receipts can be greater than import payments,this creates surplus in the economy and deficit in the other case. balance of trade is a component of BOP.
What is the relationship between the balance of payments BOP and interest rates?
If the interest rate is lower and balance of payment is large then the currant account will be deficit
Why does the balance of payments is always balane even though the balance of trade does not?
the balance of payments defines an economy's account of receipts and payments.it includes all current accounts and capital accounts. a deficit in current account is managed by creating a surplus in capital account and vice-versa.however,balance of trade is just the balance of exports and imports,exports receipts can be greater than import payments,this creates surplus in the economy and deficit in the other case. balance of trade is a component of BOP.
How exchange rate has affected BOP?
If the amount spent on goods and service by UK buyers is greater than the amount received from selling goods and services abroad, the UK will experience a balance of payments deficit (trade deficit). If the reverse occurs then the UK will experience a balance of payments surplus (trade surplus)
If a country pays more money to other countries than it receives from other countries what type of balance of payments does it have?
deficit
If a country pays out more money to other countries than it receives from other countries what type of balance of payments does it have?
deficit
