BOP Flashcards
Current account
Value of trade, investment income and unilateral transfer
Capital account
Measure financial activity
BOP FORMULA
Current account balance (exports - imports)
+
Capital account balance (capital inflow-capital outflow)
+
Financial account balance (financial inflow - financial outflow)
+
Reserve balance (change in monetary reserve)
Current account factors
Good traded
Services traded
Income
Transfers
Capital account factors
Transfers of fixed assets (real estate)
Financial account factors
Net FDI
net portfolio investments
Other investments
Official reserve account factors
Changes in reserve including gold, forex, and IMF position
Capital control
Limits or alters rate that capitale exits or enters country
Capital flight
Huge outflow of capital because of fear