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What is meant by a current account deficit on balance of payment?
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∙ 9y ago
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∙ 9y ago
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If the Balance of payment always always balances then why you have deficit in the balance of payment What measure can be government take to address an in-balance in the Balance of payment?
when they are talking about the deficit or surplus they are usually only talking about the current account. The balance of payments will balance because the other accounts in it (Capital, financial and erros and ommissions) will account for the other parts eg if current account has defiecit of 100m the capital, financial and erros and ommisions will have a surplus of 100m
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.
What are the effect of deficit in balance of payment in developing countries like Nigeria?
ways of controlling deficit balance of payment in nigeria
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
Distingush with examples between visible and invisible iterms in the current account of the balance of payment?
Goods are considered visible items on the current account, whereas, services are considered invisible items on the current account.
If the Balance of payment always always balances then why you have deficit in the balance of payment What measure can be government take to address an in-balance in the Balance of payment?
when they are talking about the deficit or surplus they are usually only talking about the current account. The balance of payments will balance because the other accounts in it (Capital, financial and erros and ommissions) will account for the other parts eg if current account has defiecit of 100m the capital, financial and erros and ommisions will have a surplus of 100m
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.
What are the effect of deficit in balance of payment in developing countries like Nigeria?
ways of controlling deficit balance of payment in nigeria
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
What are the current economic problems that Greece is dealing with?
Greece is currently facing economic debt crisis balance of payment deficit unemployment high inflation
Distingush with examples between visible and invisible iterms in the current account of the balance of payment?
Goods are considered visible items on the current account, whereas, services are considered invisible items on the current account.
What is the balance of payment formula?
Current account+capital account+financial account+balance items=0
What does a payment on account effect?
Your bank balance.
Why a nation can have a favorable balance of trade and a unfavorable balance of payment?
it shows up as a trade deficit with the soncumer-goods-exporting nation.
What payment on account by a customer?
A payment on account by a customer happens when a customer pays a bill. For example, if a person had an account at a furniture store, each month, he or she would make a payment on their account to pay down their balance.
What is a payment on account by a customer?
A payment on account by a customer happens when a customer pays a bill. For example, if a person had an account at a furniture store, each month, he or she would make a payment on their account to pay down their balance.
A balance of payment deficit occurs when?
the net outflow of money from a country exceeds the net inflow of money from abroad--- by L.M
