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Official Reserve Account:This part of the balance of payments informs us about how the balance of both current and capital accounts taken together is settled.Transaction in this section is called accommodating transaction. They are accommodating transaction because the funds are to make the balance of payments balance. When the net balance on the current and capital accounts is in deficit, the deficit must be settled with an equal net credit in the official reserve account. If on the other hand, a country has a surplus, the surplus must be used up to balance the balance of payments.
GROWTH OF REGIONAL FINANCIAL INSTITUTIONS: We find many levels of groupings of nations in the international arena. Groups of countries that share borders often have semi-perma
Why is high unemployment considered a bad thing? High unemployment means that a nation's resources are underutilized. It also poses great psychological, economic, and social c
1. Consider a world with two assets: a riskless asset paying a zero interest rate, and a risky asset whose return r can take values +10% or –8% with equal probability. An individua
a) Explain the perverse incentive. b) What makes the incentive perverse? c) How could the incentive makers better the incentive?
houthukkar analysis in micro economics
At a market price of $21 a toy, what quantity does the firm produce in the short run and does the firm make a positive economic profit, a zero economic profit, or an economic loss?
NEED OF REFORMS: Presently Government offices generate a lot of paper work in the form of reports/returns, extended file movement in many cases for clarification of some mino
to what extent are interest rates determined by the economic theory
meaning of opportunity cost
Illustrates the key terms of excise tax? Terms of excise tax: a. Tax incidence • Who bears the load of the tax? b. Excess burden or Deadweight loss • Taxes inflict
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