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.
Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer: Q : Autonomous or accommodating carry Which transactions- autonomous or accommodating carry balance in BOP? Answer: Accommodating transactions carry balance in the BOP or balance of payment.
Which transactions- autonomous or accommodating carry balance in BOP? Answer: Accommodating transactions carry balance in the BOP or balance of payment.
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