The BOP as a Flow Statement Two types of business transactions dominate the balance of payments: Exchange of Real Assets Exchange of Financial Assets Although assets can be identified as belonging to distinct groups,it is easier to think of all assets simply as goods that can be bought or sold (a clock versus a bond)
The BOP as a Flow Statement Two types of business transactions dominate the balance of payments: Exchange of Real Assets Exchange of Financial Assets Although assets can be identified as belonging to distinct groups, it is easier to think of all assets simply as goods that can be bought or sold (a clock versus a bond)
Credits and debits Credits are transactions that give rise to a receipt from the rest of the world --For instance,export of goods and services. Debits are transactions that give rise to a payment to the rest of the world. --For instance,import of goods and services
Credits and debits Credits are transactions that give rise to a receipt from the rest of the world --For instance, export of goods and services. Debits are transactions that give rise to a payment to the rest of the world. --For instance, import of goods and services
BOP is separated into subaccounts A.Current Account B.)Capital Account C.Financial Account D.Net Errors and Omissions E.Reserves and Related Items
BOP is separated into subaccounts A. Current Account B. Capital Account C. Financial Account D. Net Errors and Omissions E. Reserves and Related Items