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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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Q: What is the relationship between the balance of payments BOP and interest rates?
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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


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.


Is Australia's Balance Of Payments positive?

balance of payment is the difference between exports and imports so if Australia's exports trade balance exceeds its imports trade balance then it is positive


How would you define the balance of payments in international trade?

The balance of payments is an accounting record of the difference between the amount of money that a country receives (known as inpayments) and the amount of money that it pays out (known as outpayments).

Related questions

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 :/ )


Difference between total receipts and total payments?

Cash balance


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.


The difference between total receipts and total payments is referred to as?

Cash Balance


Describe the salient features of India's Balance of payment?

Features of Balance of Payments Balance of Payments has the following features: (i) It is a systematic record of all economic transactions between one country and the rest of the world. (ii) It includes all transactions, visible as well as invisible. (iii) It relates to a period of time. Generally, it is an annual statement. (iv) It adopts a double-entry book-keeping system. It has two sides: credit side and debit side. Receipts are recorded on the credit side and payments on the debit side. (v) When receipts are equal to payments, the balance of payments is in equilibrium; when receipts are greater than payments, there is surplus in the balance of payments; when payments are greater than receipts, there is deficit in the balance of payments. (vi) In the accounting sense, total credits and debits in the balance of payments statement always balance each other.


How does a country calculate their balance of payments?

Their treasury calculates the income gained from all their exports, and expenditure lost from all their imported goods. That difference between the two figures, gives the balance of payments.


Is Australia's Balance Of Payments positive?

balance of payment is the difference between exports and imports so if Australia's exports trade balance exceeds its imports trade balance then it is positive


What is the relationship between the interest rates and the money in circulation?

Relationship is that if the interest rates increase we are going to invest less and vice-versa.