--%>
Assignment Help - homework help

How Balance of payments always balances

Balance of payments (BOP) always balances. Describe it.

Answer: Balance of payments is for all time balanced. The negative balance on current account is equated with positive balance in capital account. The monetary authorities might finance a deficit by depleting their reserves of foreign currencies or through borrowing from the IMF and so on. Therefore BOP is forever in balance.

   Related Questions in International Economics

  • Q : Economic Growth of a country Can

    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

    		•
  • Q : Problem on International trade economy

    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

    		•
  • Q : International monetary system safeguard

    safeguard against the crisis of confidence in system explain

    		•
  • Q : Must home production be defended to

    Examining US–Canadian imports-exports and analyzing a call to protect the US lumber business.

    		•
  • Q : Current account and capital

    Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer:

    Q : Balance of trade Which transactions

    Which transactions find out the balance of trade? When the balance of trade is in surplus?

    		•
  • Q : Macroeconomic adjustment and EMU The

    The practice considers the Treasury’s elucidation of the consequence on macroeconomic adjustment of joining the euro.

    		•
  • Q : Lone mill mine What challenges are

    What challenges are facing lone mill mine and what strategies can be used

    		•
  • Q : Who won the Nobel Prize for Economics

    Who won the Nobel Prize for Economics in 1997?

    		•
  • Q : Gain from specialization and exchange

    If a Hawaiian can produce 50 bushels of either potatoes or pineapples per acre, whereas an Idahoan manages just 3 bushels of pineapples or 30 bushels of potatoes per acre, then: (1) Idaho’s absolute drawbacks prevent gains from specialization and exchange. (2) T

    		•