The relationship between the current account, financial account and balance of payment.

Question

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Answer 1

Question

Chapter 18, Problem 18.1.1RQ

To determine

The relationship between the current account, financial account and balance of payment.

Expert Solution & Answer

Explanation of Solution

The financial account and current account are the components of the balance of the payment. The sum of the current account and financial account is equal to the balance of the payment, which should be zero to each other that is, if the current account has a deficit balance, the financial account should have a surplus balance.

Economics Concept Introduction

Concept Introduction:

Current account: The current account is the entry of all the transactions of a country net export, net income on investment and net transfers as a part of the balance of payment.

Financial account: The financial account is the book keeping entry of all the transactions such as the purchases of the goods and services from the foreign country.

Balance of payment: The balance of the payment is the book keeping entry of the trade between two countries goods and services.

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Answer 2

Question

Chapter 18, Problem 18.1.1RQ

To determine

The relationship between the current account, financial account and balance of payment.

Expert Solution & Answer

Explanation of Solution

The financial account and current account are the components of the balance of the payment. The sum of the current account and financial account is equal to the balance of the payment, which should be zero to each other that is, if the current account has a deficit balance, the financial account should have a surplus balance.

Economics Concept Introduction

Concept Introduction:

Current account: The current account is the entry of all the transactions of a country net export, net income on investment and net transfers as a part of the balance of payment.

Financial account: The financial account is the book keeping entry of all the transactions such as the purchases of the goods and services from the foreign country.

Balance of payment: The balance of the payment is the book keeping entry of the trade between two countries goods and services.

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Answer 3

Question

Chapter 18, Problem 18.1.1RQ

To determine

The relationship between the current account, financial account and balance of payment.

Expert Solution & Answer

Explanation of Solution

The financial account and current account are the components of the balance of the payment. The sum of the current account and financial account is equal to the balance of the payment, which should be zero to each other that is, if the current account has a deficit balance, the financial account should have a surplus balance.

Economics Concept Introduction

Concept Introduction:

Current account: The current account is the entry of all the transactions of a country net export, net income on investment and net transfers as a part of the balance of payment.

Financial account: The financial account is the book keeping entry of all the transactions such as the purchases of the goods and services from the foreign country.

Balance of payment: The balance of the payment is the book keeping entry of the trade between two countries goods and services.

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Answer 4

Question

Chapter 18, Problem 18.1.1RQ

To determine

The relationship between the current account, financial account and balance of payment.

Expert Solution & Answer

Explanation of Solution

The financial account and current account are the components of the balance of the payment. The sum of the current account and financial account is equal to the balance of the payment, which should be zero to each other that is, if the current account has a deficit balance, the financial account should have a surplus balance.

Economics Concept Introduction

Concept Introduction:

Current account: The current account is the entry of all the transactions of a country net export, net income on investment and net transfers as a part of the balance of payment.

Financial account: The financial account is the book keeping entry of all the transactions such as the purchases of the goods and services from the foreign country.

Balance of payment: The balance of the payment is the book keeping entry of the trade between two countries goods and services.

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Answer 5

Chapter 18, Problem 18.1.1RQ

To determine

The relationship between the current account, financial account and balance of payment.

Expert Solution & Answer

Explanation of Solution

The financial account and current account are the components of the balance of the payment. The sum of the current account and financial account is equal to the balance of the payment, which should be zero to each other that is, if the current account has a deficit balance, the financial account should have a surplus balance.

Economics Concept Introduction

Concept Introduction:

Current account: The current account is the entry of all the transactions of a country net export, net income on investment and net transfers as a part of the balance of payment.

Financial account: The financial account is the book keeping entry of all the transactions such as the purchases of the goods and services from the foreign country.

Balance of payment: The balance of the payment is the book keeping entry of the trade between two countries goods and services.

Answer 6

Chapter 18, Problem 18.1.1RQ

To determine

The relationship between the current account, financial account and balance of payment.

Expert Solution & Answer

Explanation of Solution

The financial account and current account are the components of the balance of the payment. The sum of the current account and financial account is equal to the balance of the payment, which should be zero to each other that is, if the current account has a deficit balance, the financial account should have a surplus balance.

Economics Concept Introduction

Concept Introduction:

Current account: The current account is the entry of all the transactions of a country net export, net income on investment and net transfers as a part of the balance of payment.

Financial account: The financial account is the book keeping entry of all the transactions such as the purchases of the goods and services from the foreign country.

Balance of payment: The balance of the payment is the book keeping entry of the trade between two countries goods and services.

Answer 7

Chapter 18, Problem 18.1.1RQ

To determine

The relationship between the current account, financial account and balance of payment.

Answer 8

Expert Solution & Answer

Explanation of Solution

The financial account and current account are the components of the balance of the payment. The sum of the current account and financial account is equal to the balance of the payment, which should be zero to each other that is, if the current account has a deficit balance, the financial account should have a surplus balance.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept Introduction:

Current account: The current account is the entry of all the transactions of a country net export, net income on investment and net transfers as a part of the balance of payment.

Financial account: The financial account is the book keeping entry of all the transactions such as the purchases of the goods and services from the foreign country.

Balance of payment: The balance of the payment is the book keeping entry of the trade between two countries goods and services.

Answer 12

Ch. 18 - Prob. 18.1.1RQ Ch. 18 - Prob. 18.1.2RQ Ch. 18 - Prob. 18.1.3RQ Ch. 18 - Prob. 18.1.4PA Ch. 18 - Prob. 18.1.5PA Ch. 18 - Prob. 18.1.6PA Ch. 18 - Prob. 18.1.7PA Ch. 18 - Prob. 18.1.8PA Ch. 18 - Prob. 18.1.9PA Ch. 18 - Prob. 18.1.10PA

The relationship between the current account, financial account and balance of payment.

The relationship between the current account, financial account and balance of payment.

Explanation of Solution

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Chapter 18 Solutions