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Balance of payments

bop

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Balance of payments

  1. 1. BALANCE OF PAYMENTS BOP of any country is a systematic record of all economic transactions between the residents of a given country and of the residents of the rest of the world in an accounting period viz a year. Major Accounts A Goods Account B Services Account C Unilateral Transfer Account D Long Term Capital Account E Short Term Capital Account F International Liquidity Account
  2. 2. BALANCE OF PAYMENTS 1 Balance of Trade 2 BOP on Current Account 3 BOP on Capital Account 4 Basic Balance 5 Overall BOP
  3. 3. BALANCE OF PAYMENTS – (MN $) MAJOR ACCOUNTS CREDIT (RECIEPTS) DEBIT (PAYMENTS) NET SURPLUS OR DEFICIT A Goods Account 200 180 +20 B Services account 100 250 -150 1 Balance of Trade (A+B) 300 430 -130 C Unilateral Transfer Acc 300 120 +180 2 BOP on Current Account (A+B+C) 600 550 +50 D Long Term Capital Acc 150 120 +30 3 Basic Balance (A+B+C+D) 750 670 +80 E Short Term Capital Acc 50 40 +10 4 BOP on Capital Acc (D+E) 200 160 +40 5 Overall BOP (2+4) 800 710 +90 F International Liquidity Acc 90 6 BOP Accounting Balance 800 800 0

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