Balance Of Payments Flashcards
1
Q
What are the components of the BOP accounts
A
Current account - records all payments of the purchase and sale of goods and services
Capital and financial account- records flows for money associated with saving , investment , speculation and currency stabilisation.
Income and currency transfers- wages, interest, profits or dividens can be repatriated into a country.
2
Q
How to calc current balance
A
Current balance= Balance of trade + indivisible + net income and current transfers
3
Q
Bop and macro objectives
A
High econ growth means CA deficit
Export led growth is preferable to Gov
