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Balance of Payments Homework

The document discusses balance of payments homework and how a tutoring service called StudyHub.vip can help students with it. Balance of payments is a complex economic concept that involves analyzing trade data and using models. Students often struggle with the homework but StudyHub.vip tutors are available to provide guidance and explanations to help students understand and complete assignments successfully.

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100% found this document useful (1 vote)
53 views7 pages

Balance of Payments Homework

The document discusses balance of payments homework and how a tutoring service called StudyHub.vip can help students with it. Balance of payments is a complex economic concept that involves analyzing trade data and using models. Students often struggle with the homework but StudyHub.vip tutors are available to provide guidance and explanations to help students understand and complete assignments successfully.

Uploaded by

afnaiokculkyqc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BoP Deficit or Surplus BoP Crisis Autonomous Transactions vs Accommodating Transactions Errors
and Omissions BoT vs BoP Rupee Convertibility BoP: Latest Convention (BPM6 format) Things to
note. Alternatively, the net output is represented by a negative number. Our customer service team
will review your report and will be in touch. ?2.00 (no rating) 0 reviews BUY NOW Save for later
?2.00 (no rating) 0 reviews BUY NOW Save for later Last updated 24 September 2023 Share this
Share through email Share through twitter Share through linkedin Share through facebook Share
through pinterest Quick Revise Shop 3.57 5 reviews Not the right resource. Also, an import is a good
or service brought form another country. Share to Twitter Share to Facebook Share to Pinterest.
Everything you need to teach the ENTIRE specification for Theme 4 Edexcel Economics. This is
tailored for the Edexcel specification, however, the versatile nature of this resource makes it suitable
for other exam boards too. Raise interest rates can attract an inflow of savings frpm abroad as well
as using domestic borrowing by consumers which they might otherwise spend on imports. In other
words, if you have few years of deficits (because your exports were not competitive enough), the
governments would want to turn this into surpluses in succeeding years, to pay off he deficits but
what actions can the gov. Learn more. Please contact the seller about any problems with your order
using the question button below the description. This test paper with questions and answers for
Class 12 will be very useful for exams and help you to score good marks Class 12 Economics
Worksheet for Part B Macroeconomics Chapter 6 Open Economy Macroeconomics CBSE Class 12
Economics Worksheet - Balance Of Payment. In the long run, the country becomes too dependent on
export-driven growth. Year 11: Big Question: Describe the structure of the balance of payments on
current accoun t in a country and discuss how and why a government might influence the current
account of a country. That created concern about the sustainability of such an imbalance. A deficit in
the current acount of balance of payments is not necessarily a problem as long as the countrie is able
to attract inflows of capital from countries with surplus, and a country has a large economy. Sample
papers should be always practiced in examination condition at home or school and the student
should show the answers to teachers for checking or compare with the answers provided. Answer:
Exports of goods and imports of goods. 1 When the value of exports of goods is greater than the
value of import of goods, it is called Surplus Balance of Trade. Question. In the context of Balance
of Payments Account, state whether the following statements are true or false. The system of
exchange has been listed as follows in Balance of Payments Class 12. Answer: (i) Investment from
abroad: It is entered in the credit side of capital account as it increases liabilities by inflow of foreign
exchange. (ii) Transfer of funds to relatives abroad: It is entered in the debit side of current account
as it is outflow of domestic currency without getting anything in return, i.e., unilateral transfer.
Upload Read for free FAQ and support Language (EN) Sign in Skip carousel Carousel Previous
Carousel Next What is Scribd. They can make things more cheaply because they pay their workers
less. If the amount of money going out of the economy by imports (goods and services bought form
another country) exceeds money from exports (goods and services sold to another country) then it is
leading to deficit. The sample papers have been provided with marking scheme. See other similar
resources ?2.00 (no rating) 0 reviews BUY NOW Save for later Not quite what you were looking for.
Foreign aid (d) Unilateral Transfer Answer: 1. (b) Invisible Items, 2. (c) Visible Items, 3. (a)
Accommodating Items, 4. (d) Unilateral Transfer True or False: Question. Resources use
contemporary, real-life examples to bring the theory to life. It looks to me like you have done this
homework in a rush. So demand for foreign currency rises. Question. Distinguish between fixed and
flexible foreign exchange rate. Also, if a country has a current account deficit (trade deficit), it will
borrow from abroad. The balance of payments has three components: the current account, the
financial account, and the capital account.
Answer: Since sale of machinery to abroad is an export of good, so it is included in the Current
Account. Answer: Fixed Rate of exchange is a rate that is fixed and determined by the government
of a country and only the government can change it. Question. What is equilibrium rate of exchange.
Import of Shipping services (a) Accommodating Items 2. Our customer service team will review
your report and will be in touch. ?3.00 (no rating) 0 reviews BUY NOW Save for later ?3.00 (no
rating) 0 reviews BUY NOW Save for later Last updated 8 April 2019 Share this Share through
email Share through twitter Share through linkedin Share through facebook Share through pinterest
Resourced 1.71 8 reviews Not the right resource. Write a review Update existing review Submit
review Cancel It's good to leave some feedback. Protect the domestic producers by taxes on
imported goods and services. Students can download the sample papers in pdf format free and score
better marks in examinations. If you download the practice worksheet for one chapter daily, you will
get higher and better marks in Class 12 exams this year as you will have stronger concepts.
Accommodating items, on the other hand, are free from the considerations of profit. It looks to me
like you have done this homework in a rush. Alternatively, the net output is represented by a
negative number. Answer: Equilibrium exchange rate occurs when supply of and demand for foreign
exchange are equal to each other. Question. Define flexible exchange rate. I am proficient in utilizing
AI tools to streamline and enhance the SEO process. But, official reserve transactions are more
relevant under a regime of pegged exchange rates than when exchange rates are floating. If you
continue to use this site we will assume that you are happy with it. Ok. Get this resource as part of a
bundle and save up to 79% A bundle is a package of resources grouped together to teach a particular
topic, or a series of lessons, in one place. Here you will get the most recent news about marketing,
strategies for effective and successful marketing, and courses on marketing. Concepts are detailed at
the same time easy to understand. Want to share your comments about Teaching AP Economics.
Balance-of-payments crises can sometimes arise as a result of the greater mobility of capital across
international borders. Bundle Economics This has many items of the Economics Edexcel GCSE
course. ?10.00 Reviews Select overall rating (no rating) Your rating is required to reflect your
happiness. If there are more exports than imports then there is a current account surplus. All the latest
worksheets with answers have been developed for Economics by referring to the most important and
regularly asked topics that the students should learn and practice to get better scores in their class
tests and examinations. Discuss briefly them components of current account. This resource hasn't
been reviewed yet To ensure quality for our reviews, only customers who have purchased this
resource can review it Report this resource to let us know if it violates our terms and conditions. It
also creates higher interest rates as the government must pay higher yields on its bonds. If there are
more exports than imports then there is a deficit. The financial account measures changes in domestic
ownership of foreign assets and foreign ownership of domestic assets. Answer: C Question. An
Indian company located in India invests in a company located abroad. Receipts of loan from abroad
and repayment of loan by foreigners are recorded on credit side.
Encourage consumers to by domestically produced products. Reason: Capital Accounts includes all
those items which affect the assets and liability status of the government or private enterprises. (i)
Borrowings create a liability on the government if the government borrows funds from World Bank
International Monetary Fund (IMF) or foreign transactions. Autonomous receipts and autonomous
payments give rise to either deficit or surplus on balance of payments. This is a big question which
has many parts to it, so please make sure you have answered ALL of the question. Encourages
speculations and fluctuation in future exchange rates. The merchandise account consists of
transactions relating to exports and imports of goods. Reviews Select overall rating (no rating) Your
rating is required to reflect your happiness. Capital Account:- It records all international transactions
those involve a resident of domestic country changing his asset with a foreign resident or his
liabilities to a foreign resident. I possess expertise in conducting comprehensive keyword research to
identify high-impact opportunities for improving search engine rankings. Year 11: Big Question:
Describe the structure of the balance of payments on current accoun t in a country and discuss how
and why a government might influence the current account of a country. For more such informative
content, stay connected to Leverage Edu. Only autonomous items are considered for the estimation
of BOP deficit. Question. What does Balance of Payments Account show. These items also known
as above the line items in the BOP. The foreign exchange rate for the country is likely to fall. This
blog on Balance of Payment Class 12 study notes will give you a thorough description of what
balance of payment is, how it works, and how it is divided into current and capital accounts. OR
What are the components of the Current Account of the Balance of Payment Account. Many
countries run deficits in their current accounts. The Financial account measures the flow of loans,
payments, loan repayments and the sale of shares. Answer: C Question. An Indian company located
in India invests in a company located abroad. Political instability and disturbance in an economy
discourage inflow of capital and encourage outflow of capital. They can make things more cheaply
because they pay their workers less. In the longer term, governments will always try and make the
account balance, in other words, if you have a few years of deficits (beacuse your exports where not
competitive enough), the government will want to turn this into surpluses in succeeding years to pay
off the deficits. Understand audiences through statistics or combinations of data from different
sources. An Import is a good or service bought from another country, leading to outflows of money
from the economy. Discuss briefly them components of current account. Due to the slow rate of
economic growth, increasing a country’s trade surplus was the best way to improve its overall
financial situation. The developer left gravely deficient, as it is usually followed by an international
trade surplus, as they fail to merge. The government can reduce demand for imports compared to
exports. But, official reserve transactions are more relevant under a regime of pegged exchange rates
than when exchange rates are floating. These terms are connected with international trade accounting.
Due in on Wednesday the 14th of November Good luck. Answer: Balance of trade is the difference
between the value of imports and exports of only physical goods. Question. The balance of trade
shows a deficit of Rs. 600 crores, the value of exports is Rs.1000 crores. What is value of Imports.
So, it will increase imports which will increase deficit in BOP. 2. Political factors- Disequilibrium in
BOP is also affected by political factors. Autonomous receipts and autonomous payments give rise to
either deficit or surplus on balance of payments. Our customer service team will review your report
and will be in touch. ?4.00 5.00 1 review BUY NOW Save for later ?4.00 5.00 1 review BUY NOW
Save for later Last updated 27 August 2021 Share this Share through email Share through twitter
Share through linkedin Share through facebook Share through pinterest Teachonomics Resources
4.34 63 reviews Not the right resource. The deficit may be the symptom of a declining industrial
base in the country. Give reasons for your answer. (i) Profits received from investments abroad is
recorded in Capital Account. (ii) Import of machines is recorded in Current Account. It looks to me
like you have done this homework in a rush. Filling Current Account Deficit with Foreign Exchange
Reserves Ideally, BoP should be Zero. With the rise of multinational corporations and job
outsourcing, trade deficits are on the rise. Answer: When price of foreign currency falls, imports are
cheaper. Answer: Exports of goods and imports of goods. 1 When the value of exports of goods is
greater than the value of import of goods, it is called Surplus Balance of Trade. Question. In the
context of Balance of Payments Account, state whether the following statements are true or false.
Answer: Borrowings from abroad are recorded on the CREDIT side of the capital Account of the
balances of payments records. The current account measures payments for the visible and invisible
imports and exports plus net income flows and transfers. America also imports a lot of automobiles
and consumer products. U.S. exports include many of the same things, but not enough to outweigh
the deficit. Answer: Market for foreign exchange for future delivery is known as the forward market.
Question. What is meant by balance of payments. America imports more than half of its goods from
just five countries. When domestic citizens buy foreign assets including bonds and direct foreign
investment, the transaction is a debit (-). If demand falls off, the value of the borrowing country's
currency may also decline. The students of Class 12 can be rest assured that the answers have been
also provided by our teachers for all worksheet of Economics so that you are able to solve the
questions and then compare your answers with the solutions provided by us. Foreign lenders will
begin to wonder whether they will get an adequate return on their investment. Understand audiences
through statistics or combinations of data from different sources. After solving the questions given in
the worksheet which have been developed as per the latest course books also refer to the NCERT
solutions for Class 12 Economics designed by our teachers Part B Macroeconomics Chapter 6 Open
Economy Macroeconomics worksheet Economics CBSE Class 12 All worksheets given above for
Class 12 Economics have been made as per the latest syllabus and books issued for the current
academic year. Other countries lend funds or invest in the deficit country's businesses to fund that
national deficit. But if the current account deficit continues for a long time, it will slow economic
growth. If you can’t then also ok, again I am very very Thankful and heavily endebt for your
generous help. Some faces balance of payments data to and imbalances paid foreign direct
investment, the key issues which are the country’s policymakers address in the search. Advertising
Research is a specialized form of marketing research conducted to improve the efficacy of
advertising. This is called the “balance of payments always in equilibrium.
This resource hasn't been reviewed yet To ensure quality for our reviews, only customers who have
purchased this resource can review it Report this resource to let us know if it violates our terms and
conditions. There is no word limit on this.you all know you need to write a lot. If a country imports
more than it exports, it will have a trade deficit. What Is Balance of Payments Current Payments and
Balance of Trade. If the value of exports is great than the value of imports there is said to be a
current account surplus. So, accommodating transactions are determined by the consequence of
autonomous transactions of BOP. In the longer term the governments will allways try and make the
accounts balance. Here are your marks: Sara: A- You could have made your answer flow a little
better. If you have a query, observation, recommendation or any issue in accessing the website. Share
to Twitter Share to Facebook Share to Pinterest. That created concern about the sustainability of such
an imbalance. Elo’s result 2023: Return on investment increased to 6 per cent and cost effi. Current
account Records transactions relating to goods, services and unrequited transfers. See other similar
resources ?3.00 (no rating) 0 reviews BUY NOW Save for later Not quite what you were looking for.
With its size and wealth, it should be exporting more. Subsidise domestic industries to give them a
competitive advantage. Answer: Balance of trade: It is the difference between exports and imports of
goods of a nation during a year. However, in the balance of payments, trade in goods (or physical
products) are called visible items and trade in services are called invisible. The balance of Payments is
divided into three main components: Current Account, Financial account, and the Capital account.
Our customer service team will review your report and will be in touch. ?2.00 (no rating) 0 reviews
BUY NOW Save for later ?2.00 (no rating) 0 reviews BUY NOW Save for later Last updated 24
September 2023 Share this Share through email Share through twitter Share through linkedin Share
through facebook Share through pinterest Quick Revise Shop 3.57 5 reviews Not the right resource.
They protect domestic producers by the use of taxation. In other words, accommodating transactions
take place to correct disequilibrium (surplus or deficit) in BOP. Eg., Government financing. These
items also known as below line items. VERY SHORT ANSWER QUESTIONS Question. It's like
taking out a school loan to pay for education. Distinguish between debit items and credit items in the
balance of paymentsHOMEWORK: components of B.O.P accounts Page 3. Answer: Components:
(i) Borrowings and lendings to and from abroad. (ii) Investments to and from abroad. (iii) Changes in
foreign exchange reserves. Question. Explain the meaning of Balance of Payments Deficit. All study
material for Class 12 Economics students have been given on studiestoday. Encourage consumers to
by domestically produced products. The balance of payments has three components: the current
account, the financial account, and the capital account. It provides enough capital to pay for all
domestic production.
There are enough excess savings to lend to countries that buy its products. Alex is the founder of
ClearIAS and one of the expert Civil Service Exam Trainers in India. Exports, imports, etc., are some
examples. Accommodating Transactions: These are undertaken to cover deficit or surplus in the
autonomous transactions. Answer: BOP deficit occurs when autonomous foreign exchange receipts
fall short of autonomous payment. Class 12 of the balance of payment tries to explain the balance of
trade and how it differs from the balance of payment, as well as autonomous products,
accommodating items, and other topics. Reply Delete Replies Reply F.U 13 November 2012 at 19:43
The balance of payments is a financial system that sets out monetary transactions between a country
and the rest of the world. You must give reason for your answer. (i) Investment from Abroad. (ii)
Transfer of funds to relatives Abroad. Some illegal transactions are not captured in the balance of
payments and this motivates the need for a statistical discrepancy. Altair:F very poor answer with no
attempt to finish the question. Extra Credit: using the spending equation for calculating GDP, can
you prove that a current account deficit must mean a financial account surplus. This system was in
place from the beginning of the Cold War until the end of the decade. Answer: The transactions of
current account of BOP are: (i) Export and import of goods (ii) Export and import of services (iii)
Unilateral transfers. Question. List the items included as invisibles in the Balance of Payments
Account. Answer: Current Account: It is the account that records imports and exports of goods,
services and unilateral transfers. An import is a good or service that is being bought and brought
from another country. The government can use the contractionary fiscal policy, by raising taxes and
cutting spending the government can reduce total demand for import compared to exports. Allow
interest rates to depriciate; a large deficit will cause the exchange rate of the currency to fall, so
incims will therefore become more expensive but exports cheeper and as the demand for imports will
fall, the demand for exports will rise, the trade deficit will disapear. Accommodating items, on the
other hand, are free from the considerations of profit. It also reveals whether the country produces
enough economic output to pay for its growth. It includes borrowings or lending to abroad,
investment from and to abroad and change in foreign exchange reserve. Question. What are
accommodating and autonomous items of BOP. Distinguish (i) between current account and capital
account, and (ii) between autonomous transactions and accommodating transactions of balance of
payments account. Students can download the sample papers in pdf format free and score better
marks in examinations. This resource hasn't been reviewed yet To ensure quality for our reviews, only
customers who have purchased this resource can review it Report this resource to let us know if it
violates our terms and conditions. This is called the “balance of payments always in equilibrium.
Trade barriers is one thing, to restrict certain imported goods. We have also provided a lot of MCQ
questions for Class 12 Economics in the worksheet so that you can solve questions relating to all
topics given in each chapter. They protect domestic producers by the use of taxation. Write a review
Update existing review Submit review Cancel It's good to leave some feedback. They raise interest
rates to attract the inflow of saving. If there are more exports than imports then there is a deficit.

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