Balance of payment Flashcards
(5 cards)
1
Q
BoP
A
an annual accounting statement of all financial transactions of a country with the rest of the world. These include transactions of individuals, businessmen, and government agencies of one country with the individuals, businessmen, and government agencies of other countries.
2
Q
Objetives of Bop
A
- Understanding International Transaction
- Policy Implications
- Exchange Rate Dynamics
- Reserves Management
- Economic Indicators
- Global Financial Stability
3
Q
Components of BOP
A
- Current Account - exports & imports of goods and services
- Capital Account - record of all transac. relates to privated investemtns, grants & loans
- Cash Account - assets of BSP in form gold reserves/forreign currencies
4
Q
Bases of international trade
A
- Distribution of Economic Resources
- Technological Efficiency
*
5
Q
Advantages of international trade
A
- Product Specialization
- Improvement of Standard of Living
- Acceleration of Economic Development
