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If the interest rate is lower and balance of payment is large then the currant account will be deficit

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What is the difference between the balance of trade and the balance of payments?

the balance of trade is how much you receive the balance of payment is how much you pay


Why does the balance of payments accounting system always balance to 0 (zero) in theory?

The balance of payments accounting system always balances to zero in theory because every transaction involving a country's economy is accounted for as either a credit or a debit, ensuring that the total inflows and outflows of money are equal. This balance reflects the overall economic relationship between a country and the rest of the world.


Relationship between balance of payments and exchage rate system?

The balance of payments describes the relationship of import, exports, and their payment transactions between countries. How these payments are made and their value is closely related to the exchange rate system. In general, the real rate of exchange between two countries depends on their price levels and these price levels may vary through trade and production. However, nominal exchange rates depend on the level of trade to provide currency because the relative value of currencies depends on how much of one country's currency can be used to buy the currency or products of another. In general, since the balance of payments reflects this relationship of transaction, it directly influences nominal exchange rates and indirectly affects real exchange rates through trade.


How does inflation impact the relationship between bond prices and inflation?

Inflation can cause bond prices to decrease because the fixed interest payments on bonds become less valuable in real terms. This means that when inflation rises, the purchasing power of the fixed interest payments decreases, leading to a decrease in bond prices.


Balance of trade?

The difference between the value of imports and exports of a country is the balance of trade. It is a country's largest component of balance of payments.

Related Questions

What are the differences between an interest-only loan and an amortized loan?

An interest-only loan requires only interest payments for a certain period, with the principal paid later. An amortized loan requires both interest and principal payments throughout the loan term, gradually reducing the balance.


What is the difference between the balance of trade and the balance of payments?

the balance of trade is how much you receive the balance of payment is how much you pay


What is the purpose of 0 credit card deals?

The purpose of the 0 credit card deals is to allow customers to pay 0% interest on balance transfers. This allows one to transfer the balance between cards and consolidate payments.


What relationship is there between the accounting equation and the balance sheet?

The relationship between the accounting equation and the balance sheet is the NET PROFIT. ( I THINK :/ )


What is the difference between CD interest at maturity and monthly interest payments?

CD interest at maturity is the total interest earned on a certificate of deposit when it reaches its maturity date, while monthly interest payments are the interest earned and paid out on a monthly basis.


Why does the balance of payments accounting system always balance to 0 (zero) in theory?

The balance of payments accounting system always balances to zero in theory because every transaction involving a country's economy is accounted for as either a credit or a debit, ensuring that the total inflows and outflows of money are equal. This balance reflects the overall economic relationship between a country and the rest of the world.


Difference between total receipts and total payments?

Cash balance


What is The difference between total payments and total charges to an account is called?

The difference between total payments and total charges to an account is called the account balance. If total payments exceed total charges, the balance will be a credit, indicating a surplus. Conversely, if total charges exceed total payments, the balance will be a debit, reflecting an outstanding amount owed. This balance is essential for understanding the financial status of the account.


Balance of trade?

The difference between the value of imports and exports of a country is the balance of trade. It is a country's largest component of balance of payments.


Relationship between balance of payments and exchage rate system?

The balance of payments describes the relationship of import, exports, and their payment transactions between countries. How these payments are made and their value is closely related to the exchange rate system. In general, the real rate of exchange between two countries depends on their price levels and these price levels may vary through trade and production. However, nominal exchange rates depend on the level of trade to provide currency because the relative value of currencies depends on how much of one country's currency can be used to buy the currency or products of another. In general, since the balance of payments reflects this relationship of transaction, it directly influences nominal exchange rates and indirectly affects real exchange rates through trade.


What is the relationship between energy balance?

There are none.


How does inflation impact the relationship between bond prices and inflation?

Inflation can cause bond prices to decrease because the fixed interest payments on bonds become less valuable in real terms. This means that when inflation rises, the purchasing power of the fixed interest payments decreases, leading to a decrease in bond prices.