The document discusses the Balance of Payments (BOP) statement of a country. It explains that the BOP records all monetary transactions between a country and the rest of the world over a period of time. It includes transactions by individuals, corporations, and the government. The BOP indicates whether a country has a trade surplus or deficit. It also helps the government monitor the economy and make fiscal and trade policy decisions. The BOP has three key accounts - the current account for goods and services, the capital account for asset transactions, and the financial account for investments and intangible assets. Maintaining a balanced BOP is important for economic stability.
Discussion on Fisher's Theory and it's effect on money supply.
The Fisher effect is an economic theory that describes the relationship between inflation and both real and nominal interest rates. The Fisher effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate.
Visit us on www.norrenberger.com for more insight.
Module - 1 :
The foreign exchange market, structure and organization- mechanics of currency trading
– types of transactions and settlement dates – exchange rate quotations and arbitrage – arbitrage with and without transaction costs – swaps and deposit markets – option forwards – forward swaps and swap positions – Interest rate parity theory.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
Unit 2.1 Foreign Currency, Foreign Transactions- trade and non trade, and Rol...Charu Rastogi
In this presentation we discuss Definition of foreign currency and foreign transactions- trade and non trade, and Role of participants in Forex markets.
A fantastic PPT on balance of payments. The PPT includes a complete of the meaning and various concepts of balance of payments. It also discusses about the type of transactions recorded in BOP and various types of accounts.
Discussion on Fisher's Theory and it's effect on money supply.
The Fisher effect is an economic theory that describes the relationship between inflation and both real and nominal interest rates. The Fisher effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate.
Visit us on www.norrenberger.com for more insight.
Module - 1 :
The foreign exchange market, structure and organization- mechanics of currency trading
– types of transactions and settlement dates – exchange rate quotations and arbitrage – arbitrage with and without transaction costs – swaps and deposit markets – option forwards – forward swaps and swap positions – Interest rate parity theory.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
Unit 2.1 Foreign Currency, Foreign Transactions- trade and non trade, and Rol...Charu Rastogi
In this presentation we discuss Definition of foreign currency and foreign transactions- trade and non trade, and Role of participants in Forex markets.
A fantastic PPT on balance of payments. The PPT includes a complete of the meaning and various concepts of balance of payments. It also discusses about the type of transactions recorded in BOP and various types of accounts.
Goal Setting (Principles of Management)Jyoti Rastogi
It is a topic of Principles of Management so this ppt will help to all the students of Management, commerce and also who want to learn that how to set their goal.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
BALANCE OF PAYMENT
1.
2. Balance Of Payment (BOP) is a statement which records all the
monetary transactions made between residents of a country and
the rest of the world during any given period.
This statement includes all the transactions made by/to
individuals, corporate and the government and helps in
monitoring the flow of funds to develop the economy.
BOP statement of a country indicates whether the country has a
surplus or a deficit of funds i.e. when a country’s export is more
than its import, its BOP is said to be in surplus.
BOP is something similar to the double entry system of
accounting. This means, all the transaction will have a debit
entry and a corresponding credit entry.
2Jyoti Rastogi (Assistant Professor)
3. Definition: According to the RBI, balance of payment is a statistical
statement that shows
1. The transaction in goods, services and income between an
economy and the rest of the world,
2. Changes of ownership and other changes in that economy’s
monetary gold, special drawing rights (SDRs), and financial
claims on and liabilities to the rest of the world, and
3. Unrequited transfers.
3Jyoti Rastogi (Assistant Professor)
4. A country’s BOP is vital for the following reasons:
BOP of a country reveals its financial and economic status.
BOP statement can be used as an indicator to determine
whether the country’s currency value is appreciating or
depreciating.
BOP statement helps the Government to decide on fiscal and
trade policies.
It provides important information to analyze and understand
the economic dealings of a country with other countries.
By studying its BOP statement and its components closely, one
would be able to identify trends that may be beneficial or
harmful to the economy of the county and thus, then take
appropriate measures.
4Jyoti Rastogi (Assistant Professor)
5. BOP
Elements
Current Account
(Goods & Services)
Capital Account
(Assets)
Financial Account
(Investments &
Intangibles)
Jyoti Rastogi (Assistant Professor) 5
6. Jyoti Rastogi (Assistant Professor) 6
BALANCE OF PAYMENT
CURRENT ACCOUNT CAPITAL ACCOUNT
Trade in Goods
(Balance of Trade = Export - Import
Factor Trade Services
(Compensation-Investment Income,
i.e., Dividends, profits, interest, etc)
Non- Factor Trade in Services
(shipping, banking, software, etc)
Private Transfer Payments
(gifts, remittances, grants, etc)
Official Transfer Payments
(gifts, remittances, grants, etc)
Foreign Investment
(FDI, FII. Euro Equities etc)
External Assistance
Commercial Borrowings
IMF
NR Deposits
Rupee Debt Services
Other Flow
Net
Visible
Net
Transfer
Net
Invisibles
7. Current Account: This account scans all the incoming and outgoing of goods
and services between countries. All the payment made for raw materials and
constructed goods is covered under this account. Few other deliveries that
include in this category are from tourism, engineering, stocks, business
services, transportation, and royalties from license and copyrights, all these
combined together make a BOP of a country.
Capital Account: Capital transaction like purchase and sale of assets (non-
financial) like land and properties are monitored under this account. This
account also records the flow of taxes, acquisition and sale of fixed assets by
immigrants moving into the different country. The shortage or excess in the
current account is governed by the finance from capital account and vice versa.
Finance Account: The funds that flow to and from other countries through
investments like real estate, foreign direct investments, business enterprises,
etc is recorded in this account. The account calculates the foreign proprietor of
domestic asset and domestic proprietor of foreign assets and analyses if it’s
acquiring or selling more assets like stocks, gold, equity etc.
Jyoti Rastogi (Assistant Professor) 7
8. Equilibrium state is when
DEMAND = SUPPLY (of Foreign Exchange)
Disequilibrium states are of two types
Jyoti Rastogi (Assistant Professor) 8
DEFICIT SURPLUS
Demand High Supply High
When the central bank buys
domestic currency
When the central bank sells
domestic currency
When the central bank sells the
foreign reserve currency
When the central bank buys foreign
currency in the FOREX
9. The country imports more goods, services & capital than
its exports.
It must borrow from other countries to pay for its
imports.
In the short-term, this fuels economic growth.
In the long-term, it will have to go into debt to pay for
consumption.
Jyoti Rastogi (Assistant Professor) 9
10. The country exports more than its imports.
Country provides enough capital to pay for all domestic
production,
A surplus boosts economic growth in the short term.
In the long run, it becomes too dependent on export-
driven growth.
Jyoti Rastogi (Assistant Professor) 10
11. There are several factors which cause disequilibrium in the BOP indicating either
surplus or deficit.
1) Economic Factors:
(a) Imbalance between exports and imports.
(b) Large scale development expenditure which causes large imports,
(c) High domestic prices which lead to imports,
(d) Cyclical fluctuations (like recession or depression) in general business activity,
(e) New sources of supply and new substitutes.
2) Political Factors: Experience shows that political instability and
disturbances cause large capital outflows and hinder Inflows of foreign capital.
3) Social Factors:
a) Changes in fashions, tastes and preferences of the people bring disequilibrium
in BOP by influencing imports and exports;
b) High population growth in poor countries adversely affects their BOP because it
increases the needs of the countries for imports and decreases their capacity to
export.
Jyoti Rastogi (Assistant Professor) 11
12. Export promotion: Exports should be encouraged by granting
various bounties to manufacturers and exporters. At the same time,
imports should be discouraged by undertaking import substitution
and imposing reasonable tariffs.
Import: Restrictions and Import Substitution are other measures
of correcting disequilibrium.
Reducing inflation: Inflation (continuous rise in prices)
discourages exports and encourages imports. Therefore,
government should check inflation and lower the prices in the
country.
Exchange control: Government should control foreign exchange
by ordering all exporters to surrender their foreign exchange to the
central bank and then ration out among licensed importers.
Jyoti Rastogi (Assistant Professor) 12
13. Devaluation of domestic currency: It means fall in the
external (exchange) value of domestic currency in terms of a unit of
foreign exchange which makes domestic goods cheaper for the
foreigners. Devaluation is done by a government order when a
country has adopted a fixed exchange rate system. Care should be
taken that devaluation should not cause rise in internal price level.
Depreciation: Like devaluation, depreciation leads to fall in
external purchasing power of home currency. Depreciation occurs
in a free market system wherein demand for foreign exchange far
exceeds the supply of foreign exchange in foreign exchange market
of a country (Mind, devaluation is done in fixed exchange rate
system.)
Jyoti Rastogi (Assistant Professor) 13