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A current account deficit can indicate a growing and healthy economy as in the short term it increases productivity and therefore increases exports in the future.
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What is meant by a current account deficit on balance of payment?
it is down
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.
What is the relationship between current account deficit and inflation management in India?
The larger the deficit the more inflation there will be. The government will print more money in the hopes of being able to get out of the deficit easier.
Why balance of payment is always balanced?
balance of payments consists two accounts namely current account and capital account. The current account deals with import of visible and invisible items and unilateral transfers. a surplus in this accounts makes a country's BOP a surplus and a deficit in this accounts indicates that the country's BOP is deficit. The capital account indicates the capital movements of that country with other countries. it also shows the countries gold and other reserves. a surplus and a deficit in the current accounts increases and decreases the reserve and so the balance of payments is equalised always. so when we say that BOP is deficit we mean only the current account in the BOP. because BOP will always be equalised.
Why is a current account surplus equivalent to foreign investment?
A country where income is greater than spending, has saving greater than investment, and a current account surplus. The excess of income over spending must be balanced by foreign investment, so there will be a financial account deficit to match the current account surplus.
What is a current account deficit?
current account deficit
What is current account deficite?
current account deficit
Why current account deficit is good for US?
The current account deficit is good for the United States because it helps them regulate their expenditure.
Define current account deficit?
A current account deficit refers to a situation whereby a country imports more than they export.
What is meant by a current account deficit on balance of payment?
it is down
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.
What is a bank balance?
A bank balance is the amount by which a current account is in credit or deficit.
Ways to finance current account deficit?
use external policy to improve exports
What is the relationship between current account deficit and inflation management in India?
The larger the deficit the more inflation there will be. The government will print more money in the hopes of being able to get out of the deficit easier.
What are the advantages and disadvantages of current account deposits?
check
Why balance of payment is always balanced?
balance of payments consists two accounts namely current account and capital account. The current account deals with import of visible and invisible items and unilateral transfers. a surplus in this accounts makes a country's BOP a surplus and a deficit in this accounts indicates that the country's BOP is deficit. The capital account indicates the capital movements of that country with other countries. it also shows the countries gold and other reserves. a surplus and a deficit in the current accounts increases and decreases the reserve and so the balance of payments is equalised always. so when we say that BOP is deficit we mean only the current account in the BOP. because BOP will always be equalised.
Debt of Latvia?
Latvia's current account which had been in deficit by 27% in late 2006 was surplus in 2010
