Balance of trade , Current account balance and Financial account balance. Concept information: Balance of payments is a statement of transactions between residents and business in a country with the foreign countries. It can be sub-divided into two parts- Current account and Capital account. Current account shows all transactions of goods and services, investments, transfer payments. While the capital account shows all transactions of financial instruments and central bank reserves.

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Answer 1

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 33, Problem 3P

To determine

Balance of trade, Current account balance and Financial account balance.

Concept information:

Balance of payments is a statement of transactions between residents and business in a country with the foreign countries. It can be sub-divided into two parts- Current account and Capital account.

Current account shows all transactions of goods and services, investments, transfer payments. While the capital account shows all transactions of financial instruments and central bank reserves.

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Answer 2

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 33, Problem 3P

To determine

Balance of trade, Current account balance and Financial account balance.

Concept information:

Balance of payments is a statement of transactions between residents and business in a country with the foreign countries. It can be sub-divided into two parts- Current account and Capital account.

Current account shows all transactions of goods and services, investments, transfer payments. While the capital account shows all transactions of financial instruments and central bank reserves.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 33, Problem 3P

To determine

Balance of trade, Current account balance and Financial account balance.

Concept information:

Balance of payments is a statement of transactions between residents and business in a country with the foreign countries. It can be sub-divided into two parts- Current account and Capital account.

Current account shows all transactions of goods and services, investments, transfer payments. While the capital account shows all transactions of financial instruments and central bank reserves.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

Chapter 33, Problem 3P

To determine