What is the key difference that determines whether an international transaction appears in the current account or the capital account?

Q: What is meant by the balance of payment? Why would it be useful to examine a country’s balance of…

A: please find the answer below.

Q: How can the United States government improve the Balance of Payments in the future from 2018 to…

A:

Q: Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the…

A: The exchange rate is USD per Rand. Now, when the US buys anything from South Africa, it converts USD…

Q: In the BOP accounts, what are the four basic components of the current account? How can information…

A: Four basic components of current account in BOP include: Goods  Services Income and  Current…

Q: Explain how changes in various economic factors affect a country's current account balance.

A: The current account balance of a country exhibits its transactions with the rest of the world. It is…

Q: What is meant by current account deficit and current account surplus? State their significance

A: A balance of payment account is a record of international transactions of an economy over a…

Q: The balance of payments of a country on current account is equal to ___________. Select one: a.…

A: Balance of payment is an account that record all the international transactions of a country with…

Q: Find the current account balance when the trade balance are 2,81,000 and the invisible balance are…

A: Generally in the given question Trade balance are given as = 281000 Invisible balance = 391000…

Q: Explain why a nation with a current account deficit is a net external borrower, while a nation with…

A: The account that represents exports and imports of goods and services of countries is known as the…

Q: What are the three components of the Balance of Payments? Explain the relationship between the…

A: The balance of payment (BOP) demonstrates the record of all financial proceedings over a period of…

Q: What are the automatic adjustment mechanisms operate to correct a deficit in the balance of payments…

A: Fixed Exchange Rate refers to the regime imposed by the reserve bank or by the central government…

Q: Define the following terms.  a. Trade b. Nominal Exchange rate c. Real Exchange rate d. Absolute…

A: The economics is the social science that study how the individual allocates their scarce resources…

Q: The GDP for the United States is $18,036 billion and its current account balance is –$484 billion.…

A: Answer to the question is as follows :

Q: Identify FOUR (4) characteristics of the foreign exchange market that makes it unique from other…

A: A foreign exchange market is a market where currencies are bought and sold.

Q: EXPLAIN IN DETAIL GENERAL ASPECTS OF BALANCE OF TRADE.

A: The Balance of trade (BOT) can be defined as the difference between the value of a country's imports…

Q: How do automatic adjustment mechanisms operate to correct a deficit in the balance of payments under…

A: Budget Deficit: A budget deficit arises when there is excess expenditure against the revenues. Or…

Q: Which of the following is included in a nation's current account? a) Purchases of foreign assets b)…

A: Bop , which stands for balance of payments, is the way a country makes record of its economic…

Q: Discuss how decisions by consumers, firms, and governments affect the balance of payments.

A: The balance of payments(BOP) situation of a country is affected by the decisions taken by different…

Q: List the relationships that define the balance of payments, and explain where in the Hong Kong…

A: There are 3 components of the balance of payment (BOP) - current account, capital account, and…

Q: How do international investment activities affect exchange rates?

A: Exchange rate refers to the amount of domestic currency that requires to buy one unit fo foreign…

Q: Which of the following statements is NOT CORRECT regarding a country's current account? Depreciation…

A: A current account Deficit refers to the situation when a country makes relatively more imports of…

Q: If the balance on the current account is $8.42 billion and the balance on the financial account is…

A: Given; Balance of current account= $8.42 billion Balance of financial account= $7.43 To find:-…

Q: Which of the following is not included in the current account?a. exports of goodsb. imports of…

A: The balance of payment account of an economy records all the monetary transactions that take place…

Q: For each of the following, explain the effect on a) current account OR capital account b) balance of…

A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: Define the term balance of trade.

A: Trade is the exchange of goods and services in return for money.

Q: In relation to a country's economy, the more a country imports and the worse the current account…

A: Current account:- it is a record of a country's transactions of goods and services, net earnings on…

Q: Is it fair for China to fix its currency by undervaluing it on the market? How does keeping its…

A: China is a large open economy that makes international trade under a fixed or pegged exchange rate…

Q: Calculate the current account balance of payment in national income when the trade balance are…

A: As per the data given in the question, Trade balance = 81000 Invisible balance = 33460 Current…