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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 is the deficit of the US?

The current US Deficit is $11,042,553,971,450.47 (11 Trillion)


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.


What is a current account deficit?

current account deficit


How a country experience a BOP surplus or deficit?

A country experiences a balance of payments (BOP) surplus when its total exports of goods, services, and capital exceed its imports, resulting in an inflow of foreign currency. Conversely, a BOP deficit occurs when imports surpass exports, leading to an outflow of currency. Factors influencing these outcomes include trade policies, exchange rates, economic conditions, and global demand for products. Persistent BOP imbalances can affect a country’s currency value and economic stability.


What is current account deficite?

current account deficit


Who won kidz bop US 2011?

Kiana Brown won the Kidz Bop US 2011. Hope this helped


Define current account deficit?

A current account deficit refers to a situation whereby a country imports more than they export.


Does US have a deficit or trade surplus?

Trade deficit


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


Measure BOP to the nearest degree?

To measure the balance of payments (BOP) to the nearest degree, one typically analyzes the transactions between a country and the rest of the world over a specific period. This includes the current account, which captures trade in goods and services, and the capital account, which reflects financial transactions. The BOP must balance, meaning that any deficit or surplus in the current account should be offset by an equal and opposite figure in the capital and financial accounts. Therefore, a precise calculation involves summing these components and rounding to the nearest degree to assess the overall economic position.


Did the US have a trade surplus or deficit?

The USA has a trade deficit.