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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.
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∙ 12y 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
Advantages and disadvantages of balance of payment?
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Advantages and disadvantage of balance of payment?
advantages of balance of payment
Elements of balance of payment?
Trade in goods Trade in service Imports and Transfer are the 4 main element of the balance of payment.
What are the effect of deficit in balance of payment in developing countries like Nigeria?
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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
Advantages and disadvantages of balance of payment?
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Trade in goods Trade in service Imports and Transfer are the 4 main element of the balance of payment.
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What are the effect of deficit in balance of payment in developing countries like Nigeria?
ways of controlling deficit balance of payment in nigeria
Why would it be useful to examine a country's balance of payment data?
why would it be useful to examine a country balance of payment data
