Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
BOP on Capital Account:
BOP on Capital Account shows only export and import of capital and the difference between the two represents a country's capital account balance. Capital account is important because movements in capital decides the sustainability of current account deficit as well as exchange rate trends. In India, capital inflows or outflows mainly take place in the form of FDI and portfolio investment, commercial loans and banking capital (NRI deposits including). FDI inflows or outflows are with the intention of buying physical assets to start a business in the home country or abroad on long term basis. Portfolio investment with a view to buying financial assets in securities markets and NRI depasits/withdrawal show short-term capital movement. External commercial borrowings are undertaken both by government and private sectors from bilateral, multilateral and private sources either on short or long term basis. Banking capital records changes in foreign assets and liabilities of the Indian banks authorised to deal in foreign exchange.
Capitalinflows increase the banks' liabilities (credit item) while outflows are their assets and enter debit items in their accounts. Further two minor items -rupee debt service to repay foreign debt in rupees and other capital accruing on account of delayed receipts of exports - are part of capital account. After adjusting for errors and omissions we get an overall balance, which is nothingbut sum of current and capital account transactions. Under IMF transactions,loans from that organisation are a credit item while repayments are a debitentry in our books.
Drawing down from and accretion to foreign exchangereserves act balancing entry to meet deficit or show surplus respectively elsewhere in BOP. Putting all the entries together, it is to be remembered that the "Balance of Payments always Balances". A related question is about BOP Equilibrium which requires that any deficit on the current account be matched by an equal surplus on the capital account and vice-versa.
A company is considering two types of water heaters. The associated costs are shown below. The estimated annual cost of operation for oil heaters equals 365 x 41045/EF x Fuel Cost
Cd players are produced on an automated assembly line process. The standard cost of CD players is 150.00 per unit. The sales price is $300.00 per unit. To achieve a 10 percent mult
Read "How Did Economists Get It So Wrong" by Paul Krugman and second, the blog "History of Economics Playground", by Pedro Duarte, Tiago Mata, Clement Levallois, Yann Grd...etc., t
Norms influence behavior conformity among group members. What factors will influence group members to conform to a group's norms, and when will members remain independent? Do indiv
In 2004, Olentangy health care cost of capital was 6%. Its investments on a historical cost valuation basis are $80,000; on a replacement cost basis are $100,000. And on a current
a) There is a general trade, and sometimes prominent as in case of UK, Canada, and Europe. When the tariff rates are showing an upward trend, the trade/GDP ratio is either declinin
Consider an economy with the following characteristics: i. The price-level is fixed ii. The economy is closed (Exports - Imports = 0) iii. Government spending (G) and Inve
I want to know price and estimate time on this assignment.
Think of a business firm you recently visited (such as Walmart, Home Depot, Red Lobster, Barnes & Noble, McDonald's, etc.). What motivated the producers of all the individual produ
# ???? .. difference between gdp at market price and nnp at factor cost
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd