Positive Balance of Payments
I have a problem with the satement “Things will look excellent for the US if we could just get to where we are consistently executing a positive Balance of Payments.” Can someone in short comment on this statement?
Expert
Balance of payments is a measure of net flow of funds from a country; it consists of both long term and short term flow of funds. A positive BOP reflects that the country is gaining from long term and short term transactions in the world and hence, accumulating wealth. Therefore, if the US has a positive BOP then it means that it is accumulating wealth thereby benefitting the economy in the short run as well as long run.
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
Can someone help me in determining the right answer from the given options. The economic growth in a country is least possible to occur as a result of: (1) Advances in the technology (2) Rises in rates of saving and investment. (3) Enhancements in its
Supply of foreign exchange: (A) By exports of services and goods(B) Direct foreign investment in residence country(C) For approximate purchases by non-residents in the home country(D) Remittances
Supply of foreign exchange:
(A) By exports of services and goods(B) Direct foreign investment in residence country(C) For approximate purchases by non-residents in the home country(D) Remittances
Who rediscovered Bachelier’s thesis?
In a completely employed economy, the higher the yield of capital goods, and the bigger its: (1) Present living standards. (2) Present output of consumer goods. (3) Growth of capacity for the future production. (4) Rates of inflation and unemployment.
safeguard against the crisis of confidence in system explain
‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’
Define foreign exchange: It is the currency other than domestic currency.
If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii
Induced investment: It is a type of investment that is of profit motive in nature.
18,76,764
Questions Asked
21,311
Experts
9,67,568
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!