Qualification > Revison Notes
Economic Notes for Government Policies(Price fixation and stuff)
***exam***:
oh me from india
mumbai to be specific :P
yeah i like being up late :P
Freaked12:
--- Quote from: ***exam*** on May 29, 2010, 11:07:44 pm ---haha really !!
where r u from
its 3:45 am here :P
--- End quote ---
hey there is this question of Balance of payment and i have the answer (Question 4(a) June 2005 paper 2
a)BOP can be defined as a summarized account of economic transactions between one country and the rest of the world over a period of time,usually a year.It records the total debt and credit of a particular country for a year.
transactions involve the principle of money in (credit) and money out(debit), which involves the import and export of goods and services or simply double entry records.The BOP therefore shows the total payments and total recipts of a particular country as a result of international trading.
-Structure of BOP-
1Current Account
Export and import of goods
2-Service transactions
------
Current balance
-------
2-Capital account
Long term capital movements
a)private
b)official
Capital account balance
3-Balancing Item
1+2+3-BOP
The BOP claimed on residents,institutions or the government of the country by residents,institutions or the governement by resident,institutions or governments of other countries.
Examples of debit items include
Import of goods
Use of foreign services
capital outflow
The BOP has two columns the debit side and the credit side
A debit item would meanthat there will be money flowing outof the country
A credit item is to the country's advantage because it will mean higher national income for the country as there is money flowing into the economy
Freaked12:
--- Quote from: Freaked12 on May 29, 2010, 11:21:43 pm ---hey there is this question of Balance of payment and i have the answer (Question 4(a) June 2005 paper 2
a)BOP can be defined as a summarized account of economic transactions between one country and the rest of the world over a period of time,usually a year.It records the total debt and credit of a particular country for a year.
transactions involve the principle of money in (credit) and money out(debit), which involves the import and export of goods and services or simply double entry records.The BOP therefore shows the total payments and total recipts of a particular country as a result of international trading.
-Structure of BOP-
1Current Account
i)Export and import of goods
ii)-Service transactions
Current balance
2-Capital account
Long term capital movements
a)private
b)official
Capital account balance
3-Balancing Item
1+2+3-BOP
The BOP claimed on residents,institutions or the government of the country by residents,institutions or the governement by resident,institutions or governments of other countries.
Examples of debit items include
Import of goods
Use of foreign services
capital outflow
The BOP has two columns the debit side and the credit side
A debit item would meanthat there will be money flowing outof the country
A credit item is to the country's advantage because it will mean higher national income for the country as there is money flowing into the economy
--- End quote ---
***exam***:
ah perfect !!! Thanks a lotttttttttttttttttttttttttttttttttt again !!!! :D :D
Freaked12:
--- Quote from: ***exam*** on May 29, 2010, 11:27:04 pm ---ah perfect !!! Thanks a lotttttttttttttttttttttttttttttttttt again !!!! :D :D
--- End quote ---
hope it helped.Now i am really going fer sleep
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