BFE 2074 Financial Economics by Chin Nee Yee

Lecture 2 (14/7/2016)

cnyee — 2016-07-14 05:13:47 UTC

1) What is a country's balance of payment, and what does this measure?
2)What does it mean for a country to be a net debtor or net creditor?
3) what is the relationship between a nation's current account balance and its capital flows?

1141326303

2016-07-14 07:06:10 UTC

Abdulmoeiz
Q1
The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts – the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while the capital account mainly includes transactions in financial instruments. An economy’s balance of payments transactions and international investment position (IIP) together constitute its set of international accounts.
Q2
A country's is a financial statement setting out the value and composition of that country's external financial assets and liabilities. A positive NIIP value indicates a nation is a creditor nation, while a negative value indicates it is a debtor nation.
Q3
their relationship to domestic
saving and investment. National income accounting
shows that the current account balance is related to
domestic saving and investment spending in the following
way:
(1) current account balance = domestic saving –
domestic investment.

1141326429 CHANG CHEE PUI

2016-07-14 09:58:47 UTC

1)A country's balance of payments is a system that summarizes the economy's transaction which are the transaction of goods, services, income, and financial assets between domestic residents, businesses, and governments and the rest of the world during specific time period. It measures both side of any two-parties transaction with two separate and offsetting entries.
2)A country is a net creditor when the total claims on foreigners exceed the total claims of foreigners on the country. A country is a net debtor when the total claims on foreigners are less than the total claims of foreigners on the country.
3)A nation's current account balance and its capital flow are identically equal with each other. When net capital inflows from abroad, the current account is running deficit. When net capital outflows, current account is surplus.

1141327450 Lim Yi Yun

2016-07-14 10:25:18 UTC

1. A country’s balance of payment is known as BOP in short form. It is a method countries use to monitor all international transactions at a specific period of time, usually calculated quarterly or annually. BOP also known as balance of international payments, which encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts.

The balance of payments classifies these transactions in two accounts
(a) the current account (includes transactions in goods, services, investment income and current transfers)
(b) capital account. (mainly includes transactions in financial instruments)

2.All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. If a country has received money, this is known as a credit, and if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming.

A surplus is indicative of an economy that is a net creditor to the rest of the world. It shows how much a country is saving as opposed to investing.

A deficit reflects government and an economy that is a net debtor to the rest of the world. It is investing more than it is saving and is using resources from other economies to meet its domestic consumption and investment requirements.

3. The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic saving - domestic investment = current account balance
Domestic saving - domestic investment = net capital flows

The current account balance and bell net capital flows just identically equal each other. If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit. If a nation is experiencing net capital outflows, then it must be running a current account surplus.

1132701519 Low Min Gi

2016-07-14 10:35:08 UTC

1. What is a country’s balance of payments, and what does this measure?

The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. A system of accounts that measure transaction of goods, service, income and financial assets between domestic resident, business, and governments and the rest of the world during specific time period. Thus the balance of payments includes all external visible and non-visible transactions of a country. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming.

2. What does it mean for a country to be a net debtor or net creditor?

Net creditor

A nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments.

Net debtor

A nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.

3. What is the relationship between a nation’s current account balance and its capital flows?

The current account balance is equal to the difference between domestic saving and domestic investment.

Domestic saving - domestic investment = current account balance

Domestic saving - domestic investment = net capital flows

A current account deficit occurs when a nation is a net recipient of foreign capital from abroad.The current account balance and net capital flows must identically equal each other:

Current Account Balance = Net Capital Flows

If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit. However, if a nation is experiencing net capital outflows, then it must be running a current account surplus.

Chin Pik Qing

qingzai20 — 2016-07-14 11:59:06 UTC

1132701934
1.The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. A system of accounts that measure transaction of goods, service, income and financial assets between domestic resident, business, and governments and the rest of the world during specific time period. Thus the balance of payments includes all external visible and non-visible transactions of a country. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming.
2. Net creditor
A nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments.
Net debtor
A nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.
3. The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic saving - domestic investment = current account balance
Domestic saving - domestic investment = net capital flows
A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. The current account balance and net capital flows must identically equal each other:
Current Account Balance = Net Capital Flows
If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit. However, if a nation is experiencing net capital outflows, then it must be running a current account surplus.

11

2016-07-14 12:01:51 UTC

YAP SHI YUAN
1.The balance of payments is the record of all international financial transactions made by a country's residents. A country's balance of payments tells you whether it saves enough to pay for its import. That reveals whether the country produces enough economic output to pay for its growth. The BOP is reported for a quarter or a year.

2. A country is a net creditor when its claims on foreign nations exceed foreign claims on it. The nation is a net debtor when foreign nations' claims on it exceed its claims on foreign nations.

3. The balance of payment contains two accounts: current and capital. The current account deals with short-term transactions known as actual transactions, as they have a real impact on income, output and employment levels of a country through the movement of goods and services in the economy. It is comprised of visible trade (export and import of goods), invisible trade(export and import of services), unilateral transfers and investment income (income from factors such as land or foreign shares). The resulting balance of the current account is approximated as the sum total of balance of trade.

The capital account is a record of the inflows and outflows of capital that directly affect a country’s foreign assets and liabilities. It is concerned with all international trade transaction between citizens of a given country and citizens in other countries. The components of the capital account include foreign investment and loans, banking capital and other forms of capital, as well as monetary movements or changes in foreign exchange reserve. The capital account flow reflects factors such as commercial borrowings, banking, investments, loans and capital.

LEE LI SHAN 1132701911

2016-07-14 12:10:13 UTC

1. What is a country’s balance of payments, and what does this measure?
The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. A system of accounts that measure transaction of goods, service, income and financial assets between domestic resident, business, and governments and the rest of the world during specific time period. Thus the balance of payments includes all external visible and non-visible transactions of a country. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming.
2. What does it mean for a country to be a net debtor or net creditor?
Net creditor
A nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments.
Net debtor
A nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.
3. What is the relationship between a nation’s current account balance and its capital flows?
The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic saving - domestic investment = current account balance
Domestic saving - domestic investment = net capital flows
A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. The current account balance and net capital flows must identically equal each other:
Current Account Balance = Net Capital Flows
If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit. However, if a nation is experiencing net capital outflows, then it must be running a current account surplus.

hahahha

2016-07-14 12:51:29 UTC

1112703171 Shivani

2016-07-14 13:02:23 UTC

a) A country's balance of payments is the record that contains all monetary transactions that is made by a country. it measures the amount of outflow and inflow of money. With the balance of payments we can conclude if a country is facing surplus or deficits.

b) A net debtor is when the debts of the country exceeds the monetary amount of funds and assets credited or saved. The net creditor is vice versa.

c) The nation's current account deals with the actual transactions and the capital flows is the capital account that records the inflow and outflow of the capital in a country. The sum of both should be zero in the balance of payments

1141326775 Lim Hong Jun

2016-07-14 13:57:05 UTC

1.BOP is a statement that summarizes an economy’s transaction with the rest of the world for a specified time period. The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts.
2. A country is a net creditor when the total claims on foreigners exceed the total claims of foreigners or positive net investment on the country. A country is a net debtor when the total claims on foreigners are less than the total claims of foreigners on the country.
3. The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic saving - domestic investment = current account balance
Domestic saving - domestic investment = net capital flows

1132701936 WONG SUET VOON

voon_9515 — 2016-07-14 14:07:31 UTC

1. The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. A system of accounts that measure transaction of goods, service, income and financial assets between domestic resident, business, and governments and the rest of the world during specific time period. Thus the balance of payments includes all external visible and non-visible transactions of a country. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming.

2. Net creditor
A nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments.
Net debtor
A nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.

3.
The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic saving - domestic investment = current account balance
Domestic saving - domestic investment = net capital flows
A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. The current account balance and net capital flows must identically equal each other:
Current Account Balance = Net Capital Flows
If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit. However, if a nation is experiencing net capital outflows, then it must be running a current account surplus.

1132701755 AIN NUR FADILAH BT ABDUL RAHMAN

2016-07-14 14:09:19 UTC

1) What is a country's balance of payment, and what does this measure?

Country's balance of payment is a balance of international payments made and all the economic transactions between a country and the rest of the world. The country’s balance of payment measures a transactions of goods, services, income and financial assets between residents, businesses and governments and the rest of the world during a specific time period.

2) What does it mean for a country to be a net debtor or net creditor?

The country is known as a net debtor when their total claims on foreigners exceed the total claims of foreigners on the nation.

The country is known as a net creditor when their total claims on foreigners less than the total claims of foreigners on the nation.

3) What is the relationship between a nation's current account balance and its capital flows?

The sum of the current account balance and capital account flows as reflected in the balance of payments will always be zero, any surplus or deficit in the current account balance is matched and cancelled out by an equal surplus or deficit in the capital account flows.

Domestic Saving – Domestic Investment ≡ Current Account Balance

Domestic Saving – Domestic Investment ≡ Net Capital Flows

A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. As the current account balance and net capital flows must identically equal each other,

Current Account Balance = Net Capital Flows

1141327008 Low Yet Leng

lowyetleng94 — 2016-07-14 14:12:52 UTC

1) Balance of payments system defined as the system of accounts that measures transactions of goods, services, income and financial assets between domestic residents, businesses and governments as well as the rest of the world during specific time period. It uses to measure the double-entry bookkeeping system, which records both sides of any two-party transaction with two separate and offsetting entries : debit entry and credit entry.

2) Net creditor is a nation whose total claims on foreigners exceed the total claims of foreigners on the nation. However, net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation.

3) The current account balance is equal to the difference between domestic saving and domestic investment:
Domestic Saving - Domestic Investment = Current Account Balance
Domestic Saving - Domestic Investment = Net Capital Flows
It also means that
Current Account Balance = Net Capital Flows
A current account deficit occurs when a nation is net recipient of foreign capital from abroad.
The current account balance and net capital flows must identically equal each other :
Current Account Balance (-ve) = Net Capital Flows (+ve)
If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit.
If a nation is experiencing net capital outflows, then it must be running a current account surplus.

2016-07-14 14:25:45 UTC

Kayeilvili Thamilchelvan
1141327466

1)The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. A system of accounts that measure transaction of goods, service, income and financial assets between domestic resident, business, and governments and the rest of the world during specific time period. Thus the balance of payments includes all external visible and non-visible transactions of a country. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case.

2)A country is a net creditor when its claims on foreign nations exceed foreign claims on it. The nation is a net debtor when foreign nations' claims on it exceed its claims on foreign nations.

3)The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic Saving – Domestic Investment ≡ Current Account Balance

Domestic Saving – Domestic Investment ≡ Net Capital Flows
Current Account Balance = Net Capital Flows

Nur Diyana Zakri 1131121167

2016-07-14 14:42:17 UTC

1) A statement that summarizes an economy’s transactions with the rest of the world for a specified time period. The balance of payment measures, the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while the capital account mainly includes transactions in financial instruments.
2) Net Debtor- Nations that have invested fewer resources than the rest of the world has invested in them
Net Creditor-Creditor nations have invested more resources in other countries than the rest of the world has invested in them. To determine if a country is a creditor nation, one must account for the the nation's overall debt balance when calculating the balance of payments.
3) The current account deals with short-term transactions known as actual transactions, as they have a real impact on income, output and employment levels of a country through the movement of goods and services in the economy. The capital account is a record of the inflows and outflows of capital that directly affect a country’s foreign assets and liabilities. It is concerned with all international trade transactions between citizens of a given country and citizens in other countries.

Loh Sook Kuen 1132700601

estherloh16 — 2016-07-14 14:46:41 UTC

1. Country's balance of payments is included all transactions between a residents and its nonresidents involving goods, services, income, financial claims on and liabilities. The balance of payments divided the transactions in two accounts that is the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while capital account are includes transactions in financial instruments.
2. Net debtor - A nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transactions and it has completed worldwide.
Net creditor - A nation with a additive balance of payment surplus. A creditor nation has positive net investment after recording all of the financial transactions completed between it.
3. The current account is a short-term transactions, as they have a real impact on income, output and employment levels. The resulting balance of the current account is approximated as the sum total of balance of trade.
The capital account is use to record the inflows and outflows of capital that affect country’s external assets and liabilities. The capital account flow reflects factors such as commercial borrowings, banking, investments, loans and capital.

1132702520 LIEW JEN YANG

jenyangisme — 2016-07-14 15:05:22 UTC

1) What is a country's balance of payment, and what does this measure?
- Balance of payment is used to monitor all international monetary transaction at a specific period of time. Normally, balance of payment is calculated quarterly or annually. It is also used to encompasses every transaction within a country's residents and non residents, including goods, services and income, financial claims, and transfers such as gifts and classifies these into two accounts, which are current account and capital account.

2)What does it mean for a country to be a net debtor or net creditor?
- A country can be a net debtor or net creditor, depending on the balance of payment. Ideally, balance of payment should be zero, but in practice this is rare to happen. Therefore, a surplus in balance of payment indicates that the country is a net creditor, while deficit in balance of payment indicates that the country is a net debtor.

3) what is the relationship between a nation's current account balance and its capital flows?
- A nation's current account balance and capital flows are identically equal to each other. When net capital inflows from abroad (positive net capital flows), the current account is running deficit (negative current account balance). Vice versa, when net capital outflows from abroad (negative net capital flows), the current account is running surplus (positive current account balance).

n

2016-07-14 15:11:53 UTC

1141123342NURUL SYUHADA BINTI ZUL RUSHDI

2016-07-14 15:11:53 UTC

1) Balance of payments system is a statement that summarizes an economy’s transactions with the rest of the world for a specified time period. It is also known as balance of international payments and abbreviated BOP. Transactions are either marked as a credit or a debit. These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers. BOP usually calculated every quarter and every calender year. When all components of the BOP accounts are included they must sum to zero with no overall surplus or deficit.

2)
Net creditor
A nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments.
Net debtor
A nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.

3) The sum of the current account balance and capital account flows as reflected in the balance of payments will always be zero, any surplus or deficit in the current account balance is matched and cancelled out by an equal surplus or deficit in the capital account flows.

Domestic Saving – Domestic Investment ≡ Current Account Balance

Domestic Saving – Domestic Investment ≡ Net Capital Flows

A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. As the current account balance and net capital flows must identically equal each other,

Current Account Balance = Net Capital Flows

NUR ATIKAH BT MAHAZIR 1141124929

nuratikahmahazir660 — 2016-07-14 15:22:04 UTC

FI #3
Country’s balance of payments is a system of accounts that measures transactions of goods, services, income, and financial assets between domestic residents, businesses, and governments and the rest of the world during specific time period.
FI #4
Net creditor is a nation whose total claims on foreigners exceed the total claims of foreigners on the nation. Whereas, net debtor is refer to as a nation whose total claims on foreigners are less than the total claims of foreigners on the nation.
FI #5
The current account balance and net capital flows must identically equal each other. If a nation experiencing net capital inflows from abroad, it must also be running a current account deficit. However, if a nation is experiencing net capital outflows, then it must be running a current account surplus.

Misrawati Binti Masri

misrawati_masri — 2016-07-14 15:22:44 UTC

1141123346

1. Balance of payments summarizes the economy's transaction of good and services, income and financial assets with the rest of the world at a specific period of time. This balance of payments also known as balance international payment. It is calculated every quarter and every year.

2. Net creditor is a nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments. While net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.

3. The current account balance is equal to the difference between domestic saving and domestic investment.

Domestic saving - domestic investment = current account balance

Domestic saving - domestic investment = net capital flows

A current account deficit occurs when a nation is a net recipient of foreign capital from abroad.The current account balance and net capital flows must identically equal each other:

Current Account Balance = Net Capital Flows

114

2016-07-14 15:23:05 UTC

Ong Wei Lian 1141

2016-07-14 15:23:34 UTC

Ong Wei Lian 1141327432

2016-07-14 15:23:38 UTC

Ong Wei Lian 1141327432

2016-07-14 15:23:39 UTC

The country balance of payments also known as balance of international payments indicates encompasses all transactions between a country's residents and its nonresidents involving goods,services and income, financial claims on and liabilities to the rest of the world and transfers such as gifts.It measures both side of any two-parties transaction with two separate and offsetting entries

Net debtor mean that when the country total claims on foreigners exceed the total claims of foreigners on the nation.

Net creditor mean that country total claims on foreigners less than the total claims of foreigners on the nation.

the current account deals with receipt and payment in cash as well as non-capital items, and the capital account reflects sources and utilization of capital. The sum of the current account and capital account as reflected in the balance of payments will always be zero; any surplus or deficit in the current account is matched and cancelled out by an equal surplus or deficit in the capital account.

Ong Wei Lian 1141327432

2016-07-14 15:23:39 UTC

1) The country balance of payments also known as balance of international payments indicates encompasses all transactions between a country's residents and its nonresidents involving goods,services and income, financial claims on and liabilities to the rest of the world and transfers such as gifts.It measures both side of any two-parties transaction with two separate and offsetting entries

Net debtor mean that when the country total claims on foreigners exceed the total claims of foreigners on the nation.

Net creditor mean that country total claims on foreigners less than the total claims of foreigners on the nation.

Ong Wei Lian 1141327432

2016-07-14 15:23:47 UTC

2) Net debtor mean that when the country total claims on foreigners exceed the total claims of foreigners on the nation.

Net creditor mean that country total claims on foreigners less than the total claims of foreigners on the nation.

3) The current account deals with receipt and payment in cash as well as non-capital items, and the capital account reflects sources and utilization of capital.
The sum of the current account and capital account as reflected in the balance of payments will always be zero (equal), any surplus or deficit in the current account is matched and cancelled out by an equal surplus or deficit in the capital account.

Tang Kai Wen 1132702550

2016-07-14 15:54:56 UTC

Q1
Balance of payments measures the receipts and payments that flow between any individual country and all other countries over a period, normally over 1 year. It is used to summarize all international economic transactions including trade, services, debts, investments for that country during the specified period. It also determined by the balance of the country's exports and imports of goods, services, and financial capital, as well as financial transfers. It reflects all payments and liabilities to foreigners (debits) and all payments and liabilities from foreigners (credits).
Q2

A net debtor country means a nation with a cumulative balance of payments deficit/(-)net investment, like the USA which has a debt of $145.8 trillion. Also, a net creditor country means a nation with cumulative balance of payment surplus and has positive net investment, where Singapore are top creditor.
Q3

The current account records exports and imports of goods and services as well as unilateral transfers whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year. It also menas that:

->Domestic Saving – Domestic Investment = (+,-) Current Account Balance/ Net Capital Flows

sunin930802 — 2016-07-14 18:28:25 UTC

1. The balance of payments (BOP) is the method countries use to monitor all international economic transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades are accounted for in the BOP in order to determine how much money is going in and out of a country by both the private and public sectors. If a country has paid money, the transaction is counted as a debit and if a country has received money, this is known as a credit, and. Thus, the observer can know that if a country has a deficit or a surplusand from BOP. BOP measures transactions for goods and services, measures inflows of capital both short term and long term: foreign direct investment and purchase of securities by investors.

2. Net creditor means a nation with a cumulative balance of payment surplus. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. While, net debtor mean a nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide.

3. A nation's current account balance and its capital flow are identically equal with each other. If a nation is experiencing net capital outflows, then it must be running a current account surplus. While, if a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit.

Domestic Saving – Domestic Investment ≡ Current Account Balance

Domestic Saving – Domestic Investment ≡ Net Capital Flows

Current Account Balance = Net Capital Flows

ANG SU NIN 1141326898

sunin930802 — 2016-07-14 18:29:32 UTC

51. The balance of payments (BOP) is the method countries use to monitor all international economic transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades are accounted for in the BOP in order to determine how much money is going in and out of a country by both the private and public sectors. If a country has paid money, the transaction is counted as a debit and if a country has received money, this is known as a credit, and. Thus, the observer can know that if a country has a deficit or a surplus and from BOP. BOP measures transactions for goods and services, measures inflows of capital both short term and long term: foreign direct investment and purchase of securities by investors.

2. Net creditor means a nation with a cumulative balance of payment surplus. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. While, net debtor mean a nation with a cumulative balance of payments deficit. A debtor nation has negative net investments after recording all of the financial transactions it has completed worldwide.

Domestic Saving – Domestic Investment = Current Account Balance

Domestic Saving – Domestic Investment = Net Capital Flows

Current Account Balance = Net Capital Flows

Nu

2016-07-15 01:21:07 UTC

Nurul Elfira 1131123064

2016-07-15 01:21:07 UTC

1. Balance of payment(BOP) is one of the method countries use to monitor all international monetary transactions at a specific period of time. It consists of

114112

2016-07-15 01:53:39 UTC

1132702250

2016-07-15 02:14:28 UTC

Maszuin
Question1
Thebalance of payment(BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every year.

114112602

2016-07-15 02:17:00 UTC

mohamed ashraf
Q1

The balance-of-payments accounts of a country record the payments and receipts of the residents of the country in their transactions with residents of other countries. If all transactions are included, the payments and receipts of each country are, and must be, equal. Any apparent inequality simply leaves one country acquiring assets in the others. For example, if Americans buy automobiles from Japan, and have no other transactions with Japan, the Japanese must end up holding dollars, which they may hold in the form of bank deposits in the United States or in some other U.S. The payments Americans make to Japan for automobiles are balanced by the payments Japanese make to U.S. individuals and institutions, including banks, for the acquisition of dollar assets. Put another way, Japan sold the United States automobiles, and the United States sold Japan dollars or dollar-denominated assets such as treasury bills and New York office buildings.

debtor nation has negative net investment after recording all of the financial transactions

The current acc, the capital acc and the finance acc make up a country's balance of payment(BOP). Together, these three accounts tell a story about the state of an economy, its economic outlook and its strategies for achieving its desired goals. A large volume of imports and exports, for example, can indicate an open economy that supports free trade . On the other hand, a country that shows little international activity in its capital or financial account may have an underdeveloped capital market and little foreign currency entering the country in the form of foreign direct investment.

1132702250

2016-07-15 02:24:25 UTC

Question 1 continued...inflow of Iforeign currency are counted as a positive entry (e.g. exports sold overseas
The outflow Of foreign currency are counted as a negative entry (e.g. imported goods and services)

1132702250

2016-07-15 02:28:21 UTC

Q2
Creditor nations have invested more resources in other countries than the rest of the world has invested in them. To determine if a country is a creditor nation, one must account for the the nation's overall debt balance when calculating the balance of payments.

Creditor nations can sometimes lose their status and become debtor nations.

Q3

Thecurrent account records exports and imports of goods and services as well as unilateral transfers whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year. The current account considers goods and services currently being produced. The credit and debit of the currentd account ue to these transactions are also recorded in the balance of current account . The capital account is concerned with payments of debts and claims, regardless of the time period. The balance of capital account includes all items reflecting changes in stocks.

1122700719

2016-07-15 02:44:05 UTC

1131122082

2016-07-15 02:45:06 UTC

112270760

2016-07-15 02:45:10 UTC

1)a statement of account to record the transaction of goods , services, income and financial asset between the country

2)

1131122971

2016-07-15 02:45:21 UTC

1)record of economic transactions between

1122700294

2016-07-15 02:45:27 UTC

1122701460

shfaz14 — 2016-07-15 02:45:30 UTC

A country balance of payment is a system of accounts that measure transac

2016-07-15 02:45:34 UTC

Ķ

2016-07-15 02:45:46 UTC

1122701548

2016-07-15 02:45:46 UTC

1. BOP is used to monitor monetary transaction at a specific period of time.

2.

1131122370

2016-07-15 02:45:49 UTC

The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. It measures transactions of goods, services, income, and financial assets within a nation and the rest of the world.

1131122868

2016-07-15 02:45:59 UTC

1.country balance of payment is a system of account transaction of goods, services, and financial assets with other countries .

2.nation has negative net investment after recording all of the financial transactions
3) The nation's current account deals with the actual transactions and the capital flows is the capital account that records the inflow and outflow of the capital in a country. The sum of both should be zero in the balance of payments.
have a negative relationship. 3.

1131121523

suhainamokhfid — 2016-07-15 02:45:59 UTC

A system

1132701879

2016-07-15 02:46:06 UTC

1122702275

2016-07-15 02:46:06 UTC

BOP is a system that record transaction between countries. It measure countries's balance of current account and capital account

1132700309

2016-07-15 02:46:10 UTC

1132702365

2016-07-15 02:46:25 UTC

1132701932

2016-07-15 02:46:28 UTC

Ching Siew Teng
The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. the balance of payments intended to measure a country’s ability to meet its obligation to exchange its currency for other currencies or for gold at fixed exchange rates. To meet this obligation, countries maintained a stock of official reserves, in the form of gold or foreign currencies, that they could use to support their own currencies.

1141327009

2016-07-15 02:46:37 UTC

yijie 1121115956

2016-07-15 02:46:53 UTC

1141125243

2016-07-15 02:46:57 UTC

BOP include current account, private capital account and official settlement balance. Current account is the outflow and inflow of good, services, income and transfer or gifts between countries. Private capital

113112232

2016-07-15 02:47:08 UTC

1) BOP is the method countries use to monitor all international monetary transactions at a specific period of time.

1141124319

2016-07-15 02:47:15 UTC

1)balance of payment is the method countries use to monitor all international monetary transactions at a specific period of time.h

1121116079

2016-07-15 02:47:24 UTC

-System of accounts that measure transaction of goods, service, income, and financial asset between domestic residents, business, government and rest of world during specific time period.
- sum of debits and credits that appear in current account, private capital account and official settlement must total should zero

2016-07-15 02:47:26 UTC

1111114774

2016-07-15 02:47:31 UTC

Sysem of account

1141124940

2016-07-15 02:47:33 UTC

BOP is a system of accounts

1131121523

suhainamokhfid — 2016-07-15 02:47:45 UTC

A system measures transactions of goods services and

11327

2016-07-15 02:47:53 UTC

1132702230

2016-07-15 02:47:53 UTC

1132701522

2016-07-15 02:47:59 UTC

1122700719

2016-07-15 02:48:05 UTC

bop

1141327009

2016-07-15 02:48:05 UTC

BOP is a system

1131122971

2016-07-15 02:48:10 UTC

1) record of economic transaction between country. Financial acct, capital acct and current acct.
2)

1122700706

2016-07-15 02:48:22 UTC

Transaction of goods and services with other countries

1141125042

2016-07-15 02:48:27 UTC

1132701522

2016-07-15 02:48:33 UTC

1122700294

2016-07-15 02:48:35 UTC

1121115956

2016-07-15 02:48:37 UTC

A system of accounts that measures transactions of goods, services, income, and financial assets between domestic residents, businesses, and government and the rest of the world during specific time period.
- Sum of debits and credits that appear in the current account, private capital accounts, and official settlements balance, the total should be zero.

1132701226

2016-07-15 02:48:53 UTC

1122701460

shfaz14 — 2016-07-15 02:49:06 UTC

BOP is transaction of goods and services with other countries

1121116999

2016-07-15 02:49:37 UTC

1. BoP, balance of payment, consist of 3 parts; financial, investment, and assets. It is a breakdown of a country's financial well being and the mechanics that drives a country's economy.

1131122016

2016-07-15 02:49:40 UTC

F #3

Countries balance of payments is a system of accounts that measures transactions of goods, service, income, and financial assets between domestic residents, businesses, and governments and the rest of the world during specific time period.

F #4

Net creditor is a country whose total claims on foreigners exceeds the total claims of foreigners on the nation, whereas Net debtor is a country whose total claims on foreigners are less than the total claims of foreigners on the nation.

F #5

The current account balance and its capital flows must identically equal each other, Current Account Balance = Net Capital Flows.

1141327009

2016-07-15 02:49:41 UTC

BOP is a method a country used to measure and control all of the money transaction . F

1132701226

2016-07-15 02:49:49 UTC

1131122372

2016-07-15 02:49:52 UTC

1) BOP is a balance of international payments made and all the economic transactions between a country and the rest of the world. It measures a transactions of goods, services, income and financial assets between residents, businesses and governments and the rest of the world during a specific time period.

2) The country is known as a net debtor when their total claims on foreigners exceed the total claims of foreigners on the nation.

The country is known as a net creditor when their total claims on foreigners less than the total claims of foreigners on the nation.

3) The nation's current account deals with the actual transactions and the capital flows is the capital account that records the inflow and outflow of the capital in a country. The sum of both should be zero in the balance of payments.

Country is balance is a transaction of goods and services between country with involve the outflow and inflow entry

daus_chocolate — 2016-07-15 02:50:55 UTC

1132702250

2016-07-15 02:50:57 UTC

Question 1
The

1132700291

2016-07-15 02:51:04 UTC

BOP records all financial transactions made between consumers, businesses and the government in one country with others

1122700805

farahaidarahim — 2016-07-15 02:51:25 UTC

1) It record the payments and receipts of the residents of the country in their transactions with residents of other countries.It helps countries to track how much money is coming. The payments and receipts of each country must be equal if all transactions are included.
2) net debtor: negative net investment, foreigner have more. net creditor: positive net investment, country have more foreign asset.
3) it have a negative relationship. The current account records exports and imports of goods and services and unilateral. The capital account record inflows and outflows of capital that affect country’s foreign assets and liabilities.

1132701426

2016-07-15 02:52:18 UTC

1122700234

2016-07-15 02:52:42 UTC

1.Parity of installment is utilized to screen all worldwide money related exchange at a particular timeframe. Typically, adjust of installment is figured quarterly or every year. It is likewise used to incorporates each exchange inside a nation's occupants and non inhabitants, including products, administrations and pay, monetary claims, and exchanges, for example, endowments and arranges these into two records, which are present record and capital record.

1132701226. 1.The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. 2. The country is known as net debtor when their total claim on foreigners exceed the total claim of foreigners on the nation..The country is know as net creditor when their fatal claim on foreigners is less than the total claim of foreigners on the nation. 3. The relationship between them are negative and the balance of payment will always be zero.

2016-07-15 02:52:55 UTC

1141124643

daus_chocolate — 2016-07-15 02:53:23 UTC

1) balance of payment is a transaction of goods and services between the country involving the entry of the inflow and outflow. It measure how much money going in and going out in the country.

2) A creditor nation has positive net investment after recording all of the financial transactions. To determine if a country is a creditor nation, one must account for the the nation's overall debt balance when calculating the balance of payments.

1122701581

myransr02 — 2016-07-15 02:53:25 UTC

1) the balance of payments is method countries to monitor all international monetary transactions a t specofic of period.

1132702250

2016-07-15 02:53:26 UTC

(BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every year.

2016-07-15 02:53:31 UTC

The balance of payment is the method countries use to monitor all international monetary transactions at a specific period of timeThe BOP figures tell us about how much is being spent by consumers and firms on imported goods and services, and how successful firms have been in exporting to other countries.

1122700294

2016-07-15 02:53:40 UTC

1122700705

2016-07-15 02:53:45 UTC

Transaction of goods and services with other countries

1121115956

2016-07-15 02:55:29 UTC

Q1 A system of accounts that measures transactions of goods, services, income, and financial assets between domestic resident, businesses, and governments and the rest of the world during specific time period. Sum of the debits and credits that appear in the current account, private capital account, and official settlements balance, the total should be zero.
Q2

1141126502

2016-07-15 02:55:37 UTC

mohamed
Q1

debtor nation has negative net investment after recording all of the financial transactions

The current account, the capital account and the financial account make up a country's balance of payments (BOP). Together, these three accounts tell a story about the state of an economy, its economic outlook and its strategies for achieving its desired goals. A large volume of imports and exports, for example, can indicate an open economy that supports free trade. On the other hand, a country that shows little international activity in its capital or financial account may have an underdeveloped capital market and little foreign currency entering the country in the form of foreign direct investment.

Here we focus on the capital and financial accounts, which tell the story of investment and capital market regulations within a given country. ��ʕ7�Y�

1122700294

2016-07-15 02:56:07 UTC

1121116999

2016-07-15 02:56:58 UTC

BoP, balance of payment, consist of 3 components; financial, capital, investment. The BoP shows a country's economic well being and the mechanics that drives their economy. It is a summary of all inflows and outflows of goods and services and investment.

1141327009

2016-07-15 02:57:13 UTC

1) method countries to monitor all international transaction of specific period time .

2) debtor nation has negative net investment after recording all of the financial transaction

114112524

2016-07-15 02:57:37 UTC

1141125243

2016-07-15 02:57:37 UTC

BOP include current account, private capital account and official settlement balance. Current account is the outflow and inflow of good s, services, income and transfer or gifts. Private capital account measure the foreign securities, money borrowing or lending and investment. Official settlement balance is the transaction by government.

1121116079

2016-07-15 02:59:54 UTC

1141327009

2016-07-15 03:00:11 UTC

1) balance of payments is method countries to control the monetary transaction
2) debtor nation has negative net investment after recording all the financia transaction.

1122700234

2016-07-15 03:00:23 UTC

2. Bank countries have put a larger number of assets in different nations than whatever remains of the world has put resources into them. To figure out whether a nation is a lender country, one must record for the country's general obligation equalization while ascertaining the parity of installments.

Lender countries can now and then lose their status and get to be indebted person countries.

3. The present record parity is equivalent to the distinction between residential sparing and household venture.

Local sparing - household speculation = current record equalization

Local sparing - household speculation = net capital streams

A present record deficiency happens when a country is a net beneficiary of remote capital from abroad.The current record adjust and net capital streams should indistinguishably square with each other:

Current Account Balance = Net Capital Flows

On the off chance that a country is encountering net capital inflows from abroad, it should likewise be running a present record deficiency. Be that as it may, if a country is encountering net capital surges, then it must run a present record excess.

112111

2016-07-15 03:00:34 UTC

1121116079

2016-07-15 03:00:34 UTC

1132701932

2016-07-15 03:01:02 UTC

2. A country is a net creditor when its claims on foreign nations exceed foreign claims on it. The nation is a net debtor when foreign nations' claims on it exceed its claims on foreign nations.

1121115956

2016-07-15 03:01:36 UTC

1121115956

2016-07-15 03:02:00 UTC

1132701522

2016-07-15 03:02:13 UTC

2. Net creditor is a nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments. While net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.

1141124319

2016-07-15 03:02:47 UTC

2) net debtor mean when their total claim on foreign exceed the total claim of foreign on the nation.
net creditoe mean when their total claim on foreign less than total claim of foreign on the nation.
3) relation between a nation's current account balance and capital flow was negative.

1131

2016-07-15 03:03:01 UTC

1122700294

2016-07-15 03:04:53 UTC

2. Net debtor - A nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transactions and it has completed worldwide.
Net creditor - A nation with a additive balance of payment surplus. A creditor nation has positive net investment after recording all of the financial transactions completed between it.

1121116079

2016-07-15 03:05:17 UTC

Q2. A country is a net creditor when the total claims on foreigners exceed the total claims of foreigners or positive net investment on the country. A country is a net debtor when the total claims on foreigners are less than the total claims of foreigners on the country.
Q3. The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic saving - domestic investment = current account balance
Domestic saving - domestic investment = net capital flows

1122700294

2016-07-15 03:06:04 UTC

3)The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic Saving – Domestic Investment ≡ Current Account Balance

Domestic Saving – Domestic Investment ≡ Net Capital Flows
Current Account Balance = Net Capital Flows

1141124643

daus_chocolate — 2016-07-15 03:06:43 UTC

1) Balance of payment is a transaction of goods and services between country which involving the debit and credit entry flow in the country. It measures the how much money going in and going out.
2) A creditor nation has positive net investment after recording all of the financial transactions. To determine if a country is a creditor nation, one must account for the the nation's overall debt balance when calculating the balance of payments.
A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide.
3) The current account deals with short-term transactions known as actual transactions, as they have a real impact on income, output and employment levels of a country through the movement of goods and services in the economy. The capital account is a record of the inflows and outflows of capital that directly affect a country’s foreign assets and liabilities. It is concerned with all international trade transactions between citizens of a given country and citizens in other countries. The components of the capital account include foreign investment and loans, banking capital and other forms of capital, as well as monetary movements or changes in foreign exchange reserve.

1121115956

2016-07-15 03:06:44 UTC

2) Net creditor is a nation whose total claims on foreigners exceed the total claims of foreigners on the nation. However, net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation.
3) The current account balance is equal to the different between domestic saving and domestic investment. Domestic saving - domestic investment = current account balance
Domestic saving - domestic investment = net capital flows

1132701932

2016-07-15 03:06:50 UTC

Domestic Saving – Domestic Investment = Current Account Balance

Domestic Saving – Domestic Investment = Net Capital Flows

Current Account Balance = Net Capital Flows

1122700294

2016-07-15 03:06:51 UTC

1122700294

2016-07-15 03:07:09 UTC

1122700294

2016-07-15 03:07:26 UTC

1122701606

2016-07-15 03:07:38 UTC

1. Balance of payments of the country ' s known as BOP in the short form . It is a country that is also a method used to monitor all international transactions in a given time period , usually calculated quarterly or annually . BOP also known as the balance of international payments , which cover all transactions between residents and non-residents of the country involving goods, services and income ; financial claims on and liabilities to the rest of the world ; and the transfer of the gift.

2. All trades executed by both the private and public sectors taken into account in the BOP to determine how much money is coming in and out of the country. If countries that have received the money, this is known as a credit, and if the state paid or given money, the transaction is treated as a debit. Theoretically, the BOP should be zero, meaning that the assets (loans) and liabilities (debits) should balance, but in practice this rarely happens. Therefore, the BOP can tell observers if a country has a deficit or surplus and from which part of the economic conflict stems.
A surplus indicates that the economy is a net creditor to the rest of the world. It shows how much the state is saving compared with investing.
Reflecting the government deficit and net debtor to the world economy. It will invest more than they save and use the resources of other countries to meet its domestic consumption and investment needs.

3. The current account balance is equal to the difference between domestic savings and domestic investment.
domestic savings - domestic investment = current account balance
domestic savings - domestic investment = net capital flows
The current account balance and net capital flow alarm is identically equal to each other . If the country is experiencing net capital inflows from abroad , it must also be running a current account deficit. If the country is experiencing a net outflow of capital , then it must run current account surplus .

1122700294

2016-07-15 03:07:57 UTC

1122700294

2016-07-15 03:08:11 UTC

1132701522

2016-07-15 03:08:18 UTC

3. They have the negative relationship. The current account records exports and imports of goods and services as well as unilateral transfers whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year.The current account deals with short-term transactions known as actual transactions, as they have a real impact on income, output and employment levels of a country through the movement of goods and services in the economy. he capital account is a record of the inflows and outflows of capital that directly affect a country’s foreign assets and liabilities. It is concerned with all international trade transactions between citizens of a given country and citizens in other countries.

1122700294

2016-07-15 03:09:18 UTC

3)The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic Saving – Domestic Investment ≡ Current Account Balance

Domestic Saving – Domestic Investment ≡ Net Capital Flows
Current Account Balance = Net Capital Flows

1122702275

2016-07-15 03:10:15 UTC

1. BOP is a system that record transaction between countries. It measure countries balance in current and capital account

2. Net debtor means countries that has less total claim while net creditor means countries that has total claim

NG KAH HOEI 1132700941

kahhoei5340 — 2016-07-15 03:11:17 UTC

1) A statement that summarizes an economy’s transaction with the rest of the world for a specified time period. The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts – the current account and the capital account. The country's balance of payment measures a transaction of goods, services, income and financial assets between residents, businesses and governments and the rest of the world during a specific time period.

2) Net creditor - A nation whose total claims on foreigners exceed the total claims of foreigners on the nation.
Net debtor - A nation whose total claims on foreigners are less than the total claims on foreigners on the nation.

3) The current account balance and net capital flows must identically equal each other:
Current Account Balance = Net Capital Flows
It is because both also is equal to the difference between domestic saving and domestic investment. A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit. If a nation is experiencing net capital outflows, then it must be running a current account surplus.

1141327009

2016-07-15 03:13:09 UTC

1122700705

2016-07-15 03:13:14 UTC

1122701606

2016-07-15 03:13:17 UTC

1122701606

2016-07-15 03:13:58 UTC

1122701606

2016-07-15 03:16:10 UTC

1. Balance of payments of the country ' s known as BOP in the short form . It is a country that is also a method used to monitor all international transactions in a given time period , usually calculated quarterly or annually . BOP also known as the balance of international payments , which cover all transactions between residents and non-residents of the country involving goods, services and income ; financial claims on and liabilities to the rest of the world ; and the transfer of the gift.
2. All trades executed by both the private and public sectors taken into account in the BOP to determine how much money is coming in and out of the country. If countries that have received the money, this is known as a credit, and if the state paid or given money, the transaction is treated as a debit. Theoretically, the BOP should be zero, meaning that the assets (loans) and liabilities (debits) should balance, but in practice this rarely happens. Therefore, the BOP can tell observers if a country has a deficit or surplus and from which part of the economic conflict stems.
A surplus indicates that the economy is a net creditor to the rest of the world. It shows how much the state is saving compared with investing.
Reflecting the government deficit and net debtor to the world economy. It will invest more than they save and use the resources of other countries to meet its domestic consumption and investment needs.
3. The current account balance is equal to the difference between domestic savings and domestic investment.
domestic savings - domestic investment = current account balance
domestic savings - domestic investment = net capital flows
The current account balance and net capital flow alarm is identically equal to each other . If the country is experiencing net capital inflows from abroad , it must also be running a current account deficit. If the country is experiencing a net outflow of capital , then it must run current account surplus .

1122701606

2016-07-15 03:16:42 UTC

1. Balance of payments of the country ' s known as BOP in the short form . It is a country that is also a method used to monitor all international transactions in a given time period , usually calculated quarterly or annually . BOP also known as the balance of international payments , which cover all transactions between residents and non-residents of the country involving goods, services and income ; financial claims on and liabilities to the rest of the world ; and the transfer of the gift.
2. All trades executed by both the private and public sectors taken into account in the BOP to determine how much money is coming in and out of the country. If countries that have received the money, this is known as a credit, and if the state paid or given money, the transaction is treated as a debit. Theoretically, the BOP should be zero, meaning that the assets (loans) and liabilities (debits) should balance, but in practice this rarely happens. Therefore, the BOP can tell observers if a country has a deficit or surplus and from which part of the economic conflict stems.
A surplus indicates that the economy is a net creditor to the rest of the world. It shows how much the state is saving compared with investing.
Reflecting the government deficit and net debtor to the world economy. It will invest more than they save and use the resources of other countries to meet its domestic consumption and investment needs.
3. The current account balance is equal to the difference between domestic savings and domestic investment.
domestic savings - domestic investment = current account balance
domestic savings - domestic investment = net capital flows
The current account balance and net capital flow alarm is identically equal to each other . If the country is experiencing net capital inflows from abroad , it must also be running a current account deficit. If the country is experiencing a net outflow of capital , then it must run current account surplus .

1141327186 Yuan Xin

525840771 — 2016-07-15 03:18:55 UTC

Q1: Balance payment measures transactions of goods, services, income, and financial assets between domestic residents , business, and governments and the rest of the world during specific period. Records both sides of any two-party transaction with two separate and offsetting entries.

Q2: Net creditor mean a nation whose total claims on foreigners exceed the
total claims of foreigners on the nation. Net debtor mean a nation whose total claims on foreigners are less than the total claims of foreigners on the nation.

Q3: The current account balance is equal to the difference between domestic saving and domestic investment.
Domestic Saving - Domestic Investment= Current Account.
domestic saving - domestic investment= nat capital flows.
A current account deficit occurs when a nation is a net recipient of foreign capital from abroad

1131122971

2016-07-15 03:18:55 UTC

2) net debtor = negative investment, net creditor = positive investment
3) negative relationship

1141327186

525840771 — 2016-07-15 03:18:58 UTC

1121116999

2016-07-15 03:19:41 UTC

2. Net creditor-nation with cumulative balance of surplus
Net debtor- nation with cumulative balance deficit
3. Current account balance is equal to the difference between domestic savings and domestic investment. It can also result as net capital flows

1132700436

2016-07-15 04:00:06 UTC

1.)Balance of payments is a record of all payment or monetary transaction which occurred between particular countries during a specific of times. It provide a glimpse of view on the monetary transaction and economic relationship of the world. It used to measure transaction of Current, Capital and Financial Account between countries. It formulated an equation that show a country Balance of payments should show sum of Current Account, Capital Account and Financial Account equally to zero.

2.) Net Debtor are countries which experiencing net capital in flow and Net Creditor are countries which experiencing net capital outflow.

3.)The current account balance are identically equal to Net Capital flows .It mean that any changes occur on either current account balance or net capital flows inflow should be balance out by having the same changes on other sides.

1132701400 Ashwinie Mogan

2016-07-15 04:49:03 UTC

(1) The balance of payments, also known as balance of international payments, encompasses all transactions between a country's residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts – the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while the capital account mainly includes transactions in financial . An economy’s balance of payments transactions and international investment position (IIP) together constitute its set of international accounts.

(2) A nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. Anyway, the net international investment position considers both assets and liabilities, whereas external debt considers only borrowed money. Suppose a country adds foreign debt of $1 billion and uses it to buy foreign buildings worth $1 billion. The country's net international investment position would remain unchanged. But the country's external debt (whether net or gross) would increase by $1 billion.

(3) The current account records exports and imports of goods and services as well as unilateral transfers whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year. In economic terms, the current account deals with receipt and payment in cash as well as non-capital items, and the capital account reflects sources and utilization of capital. The sum of the current account and capital account as reflected in the balance of payments will always be zero; anysurplus or deficit in the current account is matched and cancelled out by an equal surplus or deficit in the capital account.

SOFEA SULTANA BT ABDUL BUHARI 1141124190

2016-07-15 04:52:18 UTC

1. Country's balance of payments is a system of account that records all the economics transaction , goods, services, income and financial assets, between the residents of the country and the rest if the world during specific time period

2. Net Debtor
A country is net debtor when it has negative net investment after recording all financial transaction . Country that have invested fewer resources than the rest of the world has invested in them .

Net Creditor
A country is net creditor when is has positive net investment after recording all financial transaction. Country that have invested more resources in other countries than the rest of the world has invested in them.

3. The current account balance and net capital flows must identically equal each other.

Current account balance = Net capital flows

If a nation is experiencing net capital inflows from abroad , it must aksi be running a current account deficit. If a nation is experiencing net capital outflows, then it must be running a current account surplus.

11

2016-07-15 08:57:19 UTC

2016-07-15 08:57:20 UTC

2016-07-15 08:57:21 UTC

SHARVIN VAMUDERAM 1141124783

2016-07-15 09:00:27 UTC

SHARVIN VAMUDERAM 1141124783

2016-07-15 09:00:28 UTC

1. Balance of payments is a system of accounts that measures transactions of goods, services,income and financial assets between domestic residents, businesses and governments and rest of the world during specific time period.

2. Net Creditor
A nation who total claims on foreigners exceed the total claims of foreigners of the nation

Net Debtor
A nation whose total claims on foreigners are less than the total claims of foreigners on the nation.

3. The current account balance and net capital flows must identically equal each other which is

Current Acoount Balance =Net Capital Flows

If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit
If a nation is experiencing net capital outflow, then it must be running a current account surplus.

1132702581 Law Qiao Wen

2016-07-15 09:01:03 UTC

Q1. Balance of payments record all financial transaction made between consumers, business and the government in one country with others during a specific period of time.The balance of payments accounts consist of current account and capital account.

Q2. A country is considered as net creditor when that country has positive net investment after recording all of the financial transactions completed between it the rest of the world. Hence, it always shows a surplus in balance of payments. In contrast, a country is known as net debtor when that country has negative net investment after recording all of the financial transactions it has completed worldwide. So, it always shows a deficit in balance of payments.

Q3. A nation's current account balance and its capital flow are identically equal with each other. The current account is running deficit when net capital inflows from abroad while the current account is surplus when net capital outflows.

1132

1132702688 — 2016-07-15 10:12:27 UTC

1132702688 SITI AMIRAH HANISAH

1132702688 — 2016-07-15 10:12:43 UTC

Question 1

Balance of payment of a country is the record of all economic transactions between the residents of the country and the rest of the world in a specific period over a year.The transactions are made by individuals,firms and government bodies.Blance of payments include all external visible and non visible transactions of a country.It measures the payments for the country’s exports and imports of goods,services,financial capital,and financial transfers.When all components of balance of payment accounts are imcluded,they must sum to zero without any surplus or deficit.

Question 2
A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. It is a nation with cumulative balance of payment surplus.A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide.It is a nation with cumulative balance of payment deficit.

Question 3
The current account records exports and imports of goods and services as well as unilateral transfers whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year. The current account considers goods and services currently being produced. The credit and debit of foreign exchange due to these transactions are also recorded in the balance of current account. The capital account is concerned with payments of debts and claims, regardless of the time period. The balance of capital account includes all items reflecting changes in stocks.

1141327417 - wong xia huei

xiahuei — 2016-07-15 10:32:11 UTC

1) Country's balance of payment is the system of accounts that measures transactions of goods, services, income and financial assets between residents, businesses and governments and the rest of the world during a specific time period. It is used to measure the double-entry bookkeeping system that records both sides of any two-party transaction with debit entry and credit entry.

2) The country is known as a net debtor when their total claims on foreigners exceed the total claims of foreigners on the nation.

The country is known as a net creditor when their total claims on foreigners less than the total claims of foreigners on the nation.

3) The sum of the current account balance and capital account flows as reflected in the balance of payments will always be zero, any surplus or deficit in the current account balance is matched and cancelled out by an equal surplus or deficit in the capital account flows.

Domestic Saving – Domestic Investment ≡ Current Account Balance

Domestic Saving – Domestic Investment ≡ Net Capital Flows

A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. As the current account balance and net capital flows must identically equal each other,

Current Account Balance = Net Capital Flows

1141125315,IHSANNOR

2016-07-15 10:38:09 UTC

1. A balance of payment is a statement that summarizes an economy’s transactions with the rest of the world for a specified time period. The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while the capital account mainly includes transactions in financial instruments. An economy’s balance of payments transactions and international investment position (IIP) together constitute its set of international accounts.

2.Net creditor is a nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments. Net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.

3. A nation's current account balance and its capital flow are identically equal with each other. If a nation is experiencing net capital outflows, then it must be running a current account surplus. While, if a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit.
(i )Domestic Saving – Domestic Investment = Current Account Balance

(ii)Domestic Saving – Domestic Investment = Net Capital Flows

(iii)Current Account Balance = Net Capital Flows

1121115869

rebeccayeeenlin — 2016-07-15 12:48:03 UTC

1121115869

rebeccayeeenlin — 2016-07-15 12:48:03 UTC

1121115869

rebeccayeeenlin — 2016-07-15 12:48:06 UTC

Q1)

1121115869

rebeccayeeenlin — 2016-07-15 13:02:36 UTC

1121115869

rebeccayeeenlin — 2016-07-15 13:02:36 UTC

Q1)A country balance of payments is a system of account that measures transaction of goods,sevice,income,and financial assets between domestic residents,business,and governments and the rest of the world during specific time period.
Q2)Net debtor means that when the country total claims of foreigners on the nation,
Net creditor mean that country total claims on foreigners less than the total claims of foreigners on the nation.
Q3)The sum of the current account balance and capital flows as reflected in the balance of payments will always be zero.

1131122823 NG SIN WEI

w3i993 — 2016-07-15 21:15:33 UTC

1. The balance-of-payments accounts of a country record the payments and receipts of the residents of the country in their transactions with residents of other countries. If all transactions are included, the payments and receipts of each country are, and must be, equal. Any apparent inequality simply leaves one country acquiring assets in the others.

2. Net debtor means a nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transaction it has completed worldwide. Net creditor means a nation with cumulative balance of payment surplus. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world.

3. The current account records exports and imports of goods and services as well as unilateral transfer whereas the capital account records transaction of purchase and sale of foreign assets and liabilities during a particular year. The current account considers goods and services currently being produced. The credit and debit of foreign exchange due to these transactions are also recorded in the balance of the current account. Capital flows refer to the movement of money for the purpose of investment, trade or business production. Capital flows occur within corporations in the form of investment capital and capital spending on operations and research & development.

Tan Shuren - 1131122973

shuren08 — 2016-07-16 05:50:33 UTC

1.What is a country's balance of payment, and what does this measure?
A country's balance of payment is the record of all economic transactions between the residents of the country and the rest of the world in a particular period.

2.What does it mean for a country to be a net debtor or net creditor?
Net debtor is nation total claims on foreigners are less than the total foreigners on the nation. And the Net creditor means a nation whose total claims on foreigners exceeds the total claims of foreigners on the nation.

3. What is the relationship between a nation's current account balance and its capital flows?
The nation current account balance will have to be identically equal with the net capital flow of the nation. As if the nation is experiencing a capital inflow from abroad, then it must also be running a current account deficit. Vice versa.

1131121123

2016-07-16 09:09:07 UTC

Q1: The balance of payments is a recorded financial transaction or also known as balance of international payments, encompasses all transactions between a country's residents and its non-residents involving goods, services and income.

Q2: Net debtor is the nation that have invested less resources. For net creditor, it have invested large resources in other country. It has a positive investment according all of the transaction recorded.

Q3: the current account known as the actual transactions. The current account must be identically equal with the net capital flow (nation). The transaction is recorded based on the inflows and outflows capitals.

1141327458 Char Chee Hau

2016-07-16 11:40:57 UTC

1) Balance of payment is used to control all international monetary transaction at a specific period of time. Basically, balance of payment is calculated in term of quarterly or annually. It is also used to encompass every transaction within a country's residents and non-residents, including goods, services and income, financial claims, and transfers such as gifts and classifies these into two accounts, which are known as current account and capital account.

2) A country is a net creditor when the total claims on foreigners more than the total claims of foreigners on the country. A country is a net debtor when the total claims on foreigners are less than the total claims of foreigners on the country.

3) The current account balance and net capital flows must identically equal each other which is
(Current Account Balance = Net Capital Flows)
This is because both also is equal to the difference between domestic saving and domestic investment. Whereby, a current account deficit occurs when a nation is a net recipient of foreign capital from abroad. If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit. If a nation is experiencing net capital outflows, then it must be running a current account surplus.

1141326877 Daniel Lim Chun Seng

2016-07-16 13:18:48 UTC

Question 1 : Balance of payment is also known as balance of international payments and abbreviated as BoP. Balance of payment is the record of all economic monetary transaction within a particular period. It classifies all the transactions into two accounts which are known as current account and capital account

Question 2 : A country is a net creditor when the total claims on foreigners are more than the total claims that foreigners which means that a creditor nation or country would has a positive net investment. A country which is a net debtor when total claims of foreigners are lesser than the total claims of foreigners have on their country. A net debtor country has a negative net investment.

Question 3 : The current account balance is equal to the net capital flows. It can be translated as the difference between domestic saving and domestic investment. A current account deficit occurs when there is more capital inflow from abroad. A current account surplus is when there is more capital outflows to abroad.

1141326877 Daniel Lim Chun Seng

2016-07-16 13:37:02 UTC

Question 1 : Balance of payment is also known as balance of international payment. It records the entire economic monetary transaction of a country. All transactions are recorded into two accounts known as current account and capital account.

Question 2 : A net creditor is when the total claims on foreigners are more than total claims of foreigners on the country. A country which is net creditor also has a positive net investment. A net debtor is when total claims on foreigners are less than total claims of foreigners on a country. A net debtor nation has a negative net investment.

Question 3 : Current account balance is equals to net capital inflow. It can also be translated as the difference between domestic savings and domestic investment A current account deficit refers to trade deficit where there is more capital inflow to a nation also called as net capital inflow. Current account surplus is also knows as trade surplus where there is more capital outflow than inflow which is net capital outflow.

1132701232

2016-07-16 15:03:29 UTC

1. Balance of payment is a system of accounts that measures transaction of goods, services, income and financial assets between domestic residents, businesses and governments and the rest of the world during specific time period.

2. Net debtor means a nation with a cumulative balance of payments deficit. It is a negative entry in the balance of payments that records a transaction resulting in a payment abroad by a domestic resident. Meanwhile, Net creditor means addition balance of payment surplus. It is a positive entry in the balance of payments that records a transaction resulting in a payment from abroad to a domestic resident.

3. Current accounts is a short-term transaction which gives impact on the income, output and employment rate. The remain balance of the current account indicated as the total of balance of trades. Meanwhile, the capital account is use to reflects the net changes in the ownership of national asset which includes the flow of financial assets between domestic private residents, foreign private residents, and domestic and foreign government.

Tun Marina bt Tun H

2016-07-16 16:14:45 UTC

Tun Marina bt Tun Hairudin 1132702362

2016-07-16 16:14:45 UTC

1) What is a country's balance of payment, and what does this measure?
The balance of payment is a statistical record of all the flow of payments between residents of one country and the rest of the world in a given year. It composed of three distinct account: the current account, the capital account and the official international reserves.
BOP Equation
=current account +capital account + errors and omissions - official international reserves

2)What does it mean for a country to be a net debtor or net creditor?
Net debtor happens when the net investment becomes negative after records all the financial transactions it has completed worldwide and the cumulative balance of payments deficit.
Net creditor happens when the net investment are positive after recording all of the financial transactions completed between it and the rest of the world and the cumulative balance of payment is surplus.

3) What is the relationship between a nation's current account balance and its capital flows?

The current account balance compares a country's net trade in goods and services + net earnings + net transfer payments to and from the rest of the world during the period specific. The current account which measures the net balances in :
1. trade in goods
2. trade in services
3. investment income from overseas assets
4. transfers (private and government) between countries.
The capital flow refer to the movement of money for the purpose of investment, trade or business production. The capital account measure the net flows of different forms of capital between nations :
1. direct capital investment including foreign direct investment
2. financial investment flows
3. banking flows
Insufficient capital flows come in to offset a current account deficit, under IMF rules, a country must make an adjustment to the size of their stock of gold and foreign currencies.

113270223

frederickwenlikh95 — 2016-07-16 18:03:09 UTC

1132702233 Cheong Wen Likh

frederickwenlikh95 — 2016-07-16 18:03:23 UTC

1) What is a country's balance of payment, and what does this measure?
BOP use to measure transactions of goods,services,income, and financial assets between domestic residents,business,and government and the rest of the world during specific time period.Example includes current account,private capital account and official settlement balance
2)What does it mean for a country to be a net debtor or net creditor?
Net debtor means total claims on foreigner exceed total claims of foreigner on the nation.Net creditor means total claims on foreigner are less than total claims of foreigners on the nation.
3) what is the relationship between a nation's current account balance and its capital flows?
Current account balance must be equal to its capital outflow.If a nation experience net capital outflow from abroad,it must also be running a current account deficit or vice versa.

1132702843 VEENESHA MURALIDHARAN

2016-07-17 07:36:52 UTC

1) What is a country's balance of payment, and what does this measure?
- Balance of payment is the difference in total value between payments into and out of a country over a period. It measures the transactions between a country's residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts.

2)What does it mean for a country to be a net debtor or net creditor?
- Net creditor nation whose total claims on foreigners exceed the total claims of foreigners on the nation. However, net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation.

3) what is the relationship between a nation's current account balance and its capital flows?
The current account records exports and imports of goods and services as well as unilateral transfer whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year. The current account considers goods and services currently being produced. The credit and debit of foreign exchange due to these transactions are also recorded in the balance of current account. The capital account is concerned with payments of debts and claims, regardless of the time period. The balance of capital account includes all items reflecting changes in stocks.

1132702896 Lim Jun Wei

2016-07-17 10:06:41 UTC

1132702525 - FARAH AYUNI SHAHRUL AZHAR

2016-07-17 10:18:10 UTC

1) A system of accounts that records the transactions of goods, services, income and financial assets between domestic residents, businesses, and governments and also the rest of the world during the specific time period. Balance of payments also measures the income and transfers of gifts with abroad.

2) Net debtor is a nation whose total claims on foreigners exceed the total claims of foreigners on the nation. Whereby, net creditor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation.

3) The relationship between the current account balance and net capital flows is that both of them must be identically equal each other. If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit. And if a nation is experiencing net capital outflows, then it must be running a current account surplus.

1122701971 LEE JEE'AN

2016-07-17 11:02:18 UTC

1) Balance of payment is a system that calculates and measures the transactions of goods and services, income, financial assets between domestic residents, businesses, and governments and the rest of the world during specific time period. Balance of payment usually only focuses only three types of accounts, which are the current account, private capital account and official settlements balance.

2) A country to be a net creditor means the nation total claims on foreigners exceed the total claims of foreigners on the nation. While a net debtor means the total claims of the nation on foreigners are less than the total claims of foreigners on the nation.

3) The current account balance is equal to the difference between domestic saving and domestic investments. Which means both them must be equally identical to each other. Any surplus or deficit in the current account is matched and will be cancelled out by an equal surplus or deficit in the capital account.

shueyshin — 2016-07-17 13:15:34 UTC

LIM SHUEY SHIN 1132701086

shueyshin — 2016-07-17 13:15:34 UTC

LIM SHUEY SHIN 1132701086
1) A statement that summarizes an economy’s transaction with the rest of the world for a specified time period. The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts – the current account and the capital account. The country's balance of payment measures a transaction of goods, services, income and financial assets between residents, businesses and governments and the rest of the world during a s
pecific time period.

2) Net debtor is the nation that have invested less resources. For net creditor, it have invested large resources in other country. It has a positive investment according all of the transaction recorded.

3) The current account balance and net capital flows must identically equal each other:
Current Account Balance = Net Capital Flows
It is because both also is equal to the difference between domestic saving and domestic investment. A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit. If a nation is experiencing net capital outflows, then it must be running a current account surplus.

1141123685-Shaleni Vassu

2016-07-17 13:28:21 UTC

1) What is a country's balance of payment, and what does this measure?

Country's balance of payment is a balance of international payments made and all the economic transactions between a country and the rest of the world. The country’s balance of payment measures a transactions of goods, services, income and financial assets between residents, businesses and governments and the rest of the world during a specific time period.

2) What does it mean for a country to be a net debtor or net creditor?

The country is known as a net debtor when their total claims on foreigners exceed the total claims of foreigners on the nation.

The country is known as a net creditor when their total claims on foreigners less than the total claims of foreigners on the nation.

3) What is the relationship between a nation's current account balance and its capital flows?

The sum of the current account balance and capital account flows as reflected in the balance of payments will always be zero, any surplus or deficit in the current account balance is matched and cancelled out by an equal surplus or deficit in the capital account flows.

Domestic Saving – Domestic Investment ≡ Current Account Balance

Domestic Saving – Domestic Investment ≡ Net Capital Flows

A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. As the current account balance and net capital flows must identically equal each other,

Current Account Balance = Net Capital Flows

1141123685-SHALENI VASSU

2016-07-17 13:31:59 UTC

1) What is a country's balance of payment, and what does this measure?

2) What does it mean for a country to be a net debtor or net creditor?

The country is known as a net debtor when their total claims on foreigners exceed the total claims of foreigners on the nation.

The country is known as a net creditor when their total claims on foreigners less than the total claims of foreigners on the nation.

3) What is the relationship between a nation's current account balance and its capital flows?

Domestic Saving – Domestic Investment ≡ Current Account Balance

Domestic Saving – Domestic Investment ≡ Net Capital Flows

A current account deficit occurs when a nation is a net recipient of foreign capital from abroad. As the current account balance and net capital flows must identically equal each other,

Current Account Balance = Net Capital Flows

Ng Tee Khai 1131123144

teekhai — 2016-07-17 13:36:21 UTC

1. The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. The BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming.

2. A debtor nation is a country with a cumulative balance of payment deficit. It has negative net investment after recording all of the financial transactions it has completed worldwide. Nations that have invested fewer resources than the rest of the world has invested in them are known as debtor nations. A creditor nation is a nation with a cumulative balance of payment surplus. Creditor nations have invested more resources in other countries than the rest of the world has invested in them.

3. The current account deals with short-term transactions known as actual transactions, as they have a real impact on income, output and employment levels of a country through the movement of goods and services in the economy. The capital account is a record of the inflows and outflows of capital that directly affect a country’s foreign assets and liabilities. It is concerned with all international trade transaction between citizens of a given country and citizens in other countries. The sum of the current account and capital account as reflected in the balance of payments will always be zero; any surplus or deficit in the current account is matched and cancelled out by an equal surplus or deficit in the capital account.

Jamunasri

2016-07-17 14:02:39 UTC

Jamunasri 1141327666

2016-07-17 14:02:40 UTC

1. A system of accounts that measures transactions of goods, services, income and financial assets between domestic residents, businesses, and govt and the rest of the world during specific time period.

2. Net Debtor
A nation with a cumulative balance payments deficit. A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide.

Net Creditor
A nation with a cumulative balance of payment surplus. A creditor nation has positive netinvestment after recording all of the financial transactions completed between it and the rest of the world.

3.Capital flows are the lending and borrowing of a nations residents over a specific period; they add to or reduce the stock of assets held

Domestic saving - Domestic Investment = Current Account Balance
Domestic saving - Domestic Investment = Net Capital Flows

The current account balance and net capital flows must identically equal each other.
If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficits.
If a nation is experiencing net capital outflows, then it must be running a current account surplus.

1132700355

1132700355 — 2016-07-17 15:58:40 UTC

1. The country balance of payment is the record of all economic transactions between the residents of the country and the rest of the world.
2.Net debtor
-A nation with a cumulative balance payment deficit. Debtor nation has negative investment after recording all of the financial transactions it has completed worldwide.

Net creditor
-Bank countries have put a greater number of assets in different nations than whatever is left of the world has put resources into them. To figure out whether a nation is a loan boss country, one must record for the country's general obligation parity while computing the parity of installments.

3.The current account and capital flows comprise the two elements of the balance of payment in international trade.

1132702896 Lim Jun Wei

2016-07-17 16:38:40 UTC

1. The balance of payments (BOP) records all financial transactions made between consumers, businesses and the government in one country with others.The BOP figures tell us about how much is being spent by consumers and firms on imported goods and services, and how successful firms have been in exporting to other countries.

2. A net debtor country is a country with a cumulative balance of payment deficit. A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide. A net creditor nation is a country that has a cumulative balance of payment surplus. A net creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world.

3. The current account records exports and imports of goods and services as well as unilateral transfer whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year.In economic terms, the current account deals with receipt and payment in cash as well as non-capital items, and the capital account reflects sources and utilization of capital. The sum of the current account and capital account as reflected in the balance of payments will always be zero; any surplus or deficit in the current account is matched and cancelled out by an equal surplus or deficit in the capital account.

1132702897 Hong Wei Thing

2016-07-17 16:49:57 UTC

1. All financial transaction made between consumers, business or governmet in a certain country will be recorded in the balnce of payment account. The figures of Balance of payment represent the amount spent by the consumer and firm. It also indirectly shows out the result of firms exporting to other countries.

2. Net debtor countries has a deficit in its balance of payment account because they have negative net investment after all the financial transaction had completed in the worldwide .While Net creditor nation is the country that has a surplus on cumulative balance of payment after recording all the financial transaction being traded in the worldwide.

3.The current account is an important indicator about an economy's health. It is defined as the sum of the balance of trade (goods and services exports less imports), net income from abroad and net current transfer.
Meanwhile, Capital flows refer to the movement of money for the purpose of investment, trade or business production.
The sum of the current account balance and capital flow as reflected will always be zero. Surplus and deficit in current account is match or canceled out by an equal in the capital flow account.

Khairul Syakirrin - 1141326816

2016-07-18 05:05:56 UTC

Khairul Syakirrin 1141326816

2016-07-18 05:12:34 UTC

1.Balance of Payments shows a countries transactions with the rest of the world. It notes inflows and outflows of money and categorises them into different sections.It measures transactions for goods and services.(used to be called visible and invisibles) The current account comprises the trade balance (which is trade in goods) and also includes the balance for trade in services.

2.Net creditor means that a country with a cumulative balance of payment surplus. A creditor country has positive net investment after recording all of the financial transactions completed between it and the rest of the world.Net debtor means that a country with a cumulative balance of payment deficit.A debtor country has negative net investment after recording all the financial transactions completed.

3.The nation current account balance have to be identically equal with the net capital outflows of the nation. As if the nation is experiencing a capital inflow from abroad,then it must also be running a current account deficit or otherwise.

Nadhirah Binti Ahmad Dahari 1132702296

2016-07-18 05:26:01 UTC

Nadhirah Binti Ahmad Dahari 1132702296

2016-07-18 05:26:02 UTC

1. Balance of payments is a system of accounts that measure transaction of goods. services. income, and financial assets between domestic residents, businesses, and government and the rest of the world during specific time period.

2. Net Debtor - A nation whose total claims on foreigners are less than the total claims of foreigner on the nation

Net Creditor - A nation whose total claims on foreigners exceed the total claims of foreigner on the nation.

3. The current account balance is equal to the different between domestic saving and domestic investment.

1122702804 NOOR KHAIRAH HAZLIN BINTI MASLI

2016-07-18 05:48:33 UTC

1. A country balance of payments are a system of accounts that measure transactions of goods, services, income, and financial assets between domestic residents, business, and governments and the rest of the world during specific period. It include the flow of financial asset.
2. Net creditor is a nation whose total claims on foreigners exceed the total claims of foreigners on the nation.To determine if a country is a creditor nation,one must account for the nation's overall debt balance when calculating the balance of payments. While net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it means thet the nation is with cumulative balance of paymnents debt.
3. The current account balance is equal to difference between domestic saving and domestic investment.
*Domestic saving-Domestic investment=current account
*Domestic saving- domestic investment= net capital flows
A current account deficit occurs when a nation is a net receipent of foreign capital from abroad.

1141326814

2016-07-18 10:49:00 UTC

NurSyazlin Bt Mohamad Azizan

1) Balance of payment is also known as balance of international payments of a country is the record of all economic transactions between residents of the country and the rest of the world including goods,services and income, financial claims and transfers such as gifts in a particular period. It classifies the transactions into two accounts which is current account and capital account.

2) Net debtor is a country total claims on foreigners are less the total claims of foreigners on the country. Net Creditor is a country which it total claims on foreigners exceed the total claims of foreigners in the country.

3) The current account balance and net capital flows must be identically equals.

Domestic Saving – Domestic Investment = Current Account Balance

Domestic Saving – Domestic Investment =
Net Capital Flow

If a country is experiencing net capital inflows from abroad, it must also be running a current account deficit where as if a country is experiencing net capital outflows, it must be running a current account surplus.

1141326948 LEE MING LIE

2016-07-18 15:17:50 UTC

Issues #3
Balance of payments is a statement that summarizes all transactions between a country’s residents and its non-residents involving goods, services and income with the rest of the world for a specified time period. BOP measures the amount of money that going in and out of a country.

Issue#4
Net debtor is a nation whose total claims on foreigners are < less than the total claims of foreigners on the nation; Net creditor is a nation whose total claims on foreigners > exceed the total claims of foreigners on the nation.

Issue#5
The current account balance and net capital flows must identically equal each other. A nation must be running a current account deficit when it is experiencing net capital inflows from abroad; then it must be running a current account surplus when it is experiencing net capital outflows.

1141326957 MOHD RIDHWAN BIN MOHAMED DELI

1141326957 — 2016-07-18 18:17:15 UTC

Question 1: The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents. The balance of payments classifies these transactions in two accounts the current account and the capital account.

Question 2: A net debtor is a nation has negative net investment after recording all of the financial transactions it has completed worldwide. A net creditor is a nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world.

Question 3: Current account balance equals to domestic saving minus domestic investment. A current account deficit refers to trade deficit where there is more capital inflow to a nation also called as net capital inflow. Current account surplus is also knows as trade surplus where there is more capital outflow than inflow which is net capital outflow.

1132702714 Mohamad Fitri bin Baharudin

fitri2013276684 — 2016-07-19 08:26:11 UTC

Q1) The balance of payments (BOP) is the method where countries used this record to monitor all international monetary transactions at a specific period of time and calculated every quarter and every calendar year. BOP encompasses all transactions between a country’s residents and its non-residents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts.

Q2) A country with by government borrow money from international financial institutions such as the World Bank, foreign governments, or to foreign lenders. The country will have a negative balance of trade, resulting from amount of money coming into the country from outside sources is greater than the amount of exports and money that the country sends out.
Net creditor country has a cumulative balance of payment surplus. The country has positive net investment after recording all of the financial transactions completed between it and the rest of the world.

Q3) The current account balance used to record exports and imports of goods and services as well as unilateral transfers while the capital account used to record all transactions of purchase and sale of foreign assets and liabilities during a particular year. The current account considers goods and services currently being produced. The capital account used to record the inflows and outflows of capital that directly affect a country’s foreign assets and liabilities. It is included all international trade transactions between citizens of a given country and citizens in other countries.

1121116690 Dayana Azmy

dayanaazmy030394 — 2016-07-19 15:05:32 UTC

1) Balance of payment is also known as balance of international payments of a country which record all of economic transaction between residents of the country and the rest of the world including goods, services and income, financial claims and transfers such as gifts in particular period. It classifies the transactions into two accounts which is current account and capital account.

2) Net debtor is a country total claims on foreigners are less total claims of foreigners on the country. Net creditor is a country which it total claims on foreigners exceed the total claim of foreigners in the country.

3) The currents account balance is equal to the net capital flows. It can be translated as the differences between domestic saving and domestic investment. A cuurent account deficit occurs when a country is experiencing net capital inflows, whereas, a county experiencing net capital outflows when the current account surplus.

1141326723 AKMAL HISYAM BIN BORHAN

1141326957 — 2016-07-19 15:06:34 UTC

1) Balance of payment of a country is the record of all economic transactions between the residents of the country and the rest of the world in a specific period over a year.The transactions are made by individuals,firms and government bodies.Blance of payments include all external visible and non visible transactions of a country.It measures the payments for the country’s exports and imports of goods,services,financial capital,and financial transfers.When all components of balance of payment accounts are imcluded,they must sum to zero without any surplus or deficit.

2) A country is considered as net creditor when that country has positive net investment after recording all of the financial transactions completed between it the rest of the world. Hence, it always shows a surplus in balance of payments. In contrast, a country is known as net debtor when that country has negative net investment after recording all of the financial transactions it has completed worldwide. So, it always shows a deficit in balance of payments.

3) The current account deals with receipt and payment in cash as well as non-capital items, and the capital account reflects sources and utilization of capital.

The sum of the current account and capital account as reflected in the balance of payments will always be zero (equal), any surplus or deficit in the current account is matched and cancelled out by an equal surplus or deficit in the capital account.

1141326723 AKMAL HISYAM BIN BORA

akmal_dazed02 — 2016-07-19 15:15:53 UTC

1141326723 AKMAL HISYAM BIN BORHAN

akmal_dazed02 — 2016-07-19 15:15:54 UTC

3) The current account deals with receipt and payment in cash as well as non-capital items, and the capital account reflects sources and utilization of capital.

S

sakinah_samsulbahari — 2016-07-19 15:37:17 UTC

Siti Sakinah Bt Samsulbahari 1131122458

sakinah_samsulbahari — 2016-07-19 15:37:18 UTC

Q1)

Siti Sakinah Bt Samsulbahari 1131122458

2016-07-19 15:53:19 UTC

Q1) Country's balance of payment is a method that countries use to monitor all international monetary transactions at a specific period of time. If all transactions are included, the payments and receipts of each country must be, equal. Any apparent inequality simply leaves one country acquiring assets in the others.

Q2) A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world. To determine if a country is a creditor nation, one must account for the the nation's overall debt balance when calculating the balance of payments. While a debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide. Nations that have invested fewer resources than the rest of the world has invested in them are known as debtor nations.

Q3) The current account deals with short-term transactions known as actual transactions, as they have a real impact on income, output and employment levels of a country through the movement of goods and services in the economy. While the capital account is a record of the inflows and outflows of capital that directly affect a country’s foreign assets and liabilities. The relationship between current account and its capital flows as reflected in the balance of payments will always be zero. Thus, any surplus or deficit in the current account is matched and cancelled out by an equal surplus or deficit in the capital account.

1132702547 Tan Chia C

2016-07-20 03:23:11 UTC

2) Net creditor is a nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments.

Net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.

A nation's current account balance and its capital flow are identically equal with each other. The current account is running deficit when net capital inflows from abroad while the current account is surplus when net capital outflows ?

fsdf

2016-07-20 08:48:13 UTC

Muhammad Syafiq Afify 1141124155

2016-07-20 08:48:37 UTC

Country's Balance of Payment
A system of accounts that measures transactions of goods, services, income, and financial assets between domestic residents, businesses, and governments and the rest of the world during specific time period.

Net Debtor
A nation whose total claims on foreigners exceeds the total claims of foreigners on the nation. To determine if a country is a creditor nation, one must account for the nation's overall debt balance when calculating the balance of payments. While net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation and it is also mean that the nation is with a cumulative balance of payments deficit.

Net Creditor
A nation whose total claims on foreigners are less than the total claims of foreigners on the nation.

3. The current account balance and net capital flows must identically equal each other which is

Current Acoount Balance =Net Capital Flows

If a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit
If a nation is experiencing net capital outflow, then it must be running a current account surplus.

1132702621 ATIQAH SHAZLIN

atiqahshazlin — 2016-07-20 13:03:30 UTC

1.Balance of payments of a country is also known as balance of international payments of a country. It is a system account that measures transactions of goods, services,income and financial assets between domestic residents, businesses, and governments and the rest of the world during a specific time period.

2. A country which is a net creditor is a country whose total claims on foreigners exceed the total claims of foreigners on the nation while a country which is a net debtor is a country which its total claims on foreigners are less than the total claims of foreigners on the nation.

3. The current account balance is equal to the net capital flows. It can be translated as the differences between domestic savings and domestic investments. A current account deficit occurs when a country is experiencing net capital inflows while a country experiences net capital outflows when the current account is in surplus.

FAAIDHA DALIA BINTI SHARIF ZAIMI

2016-07-20 14:57:10 UTC

1132702526

Q1) Balance of payments basically is a system of accounts that measures transactions of goods, services, income and financial assets between domestic residents, businesses and governments and the rest of the world during specific time period. It measures the double-entry bookkeeping system which records two-party transaction which are debit entry and credit entry.

Q2) Net creditor is a nation whose total claims on foreigners exceed the total claims of foreigners on the nation while net debtor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation.

Q3) Current account measures the flow of goods, services, income, and transfers or gifts between domestic residents, businesses, and governments and the rest of the world. Basically, it reflects a nation's net income.

Balance of trade + net income from abroad + net current transfer (G&S export-import)

While capital account is a tabulation of the flows of financial assets between domestic private residents, foreign private residents, and domestic and foreign governments. Sometimes it's referred to as financial account.

2016-07-20 15:30:46 UTC

1141327464 Sharifah nur munirah

2016-07-21 05:32:23 UTC

1) Balance of payment is known as balance of international payments and it encompasses all transactions between country’s residents and its nonresidents involve for goods and services and income, financial claims on and transferred such as gifts. The balance of payments classifies these transactions in two accounts which is current accpunt and capital account.

2) Net debtor is a business's overall financial situation by subtracting the total value of a company's liabilities and debts from the total value of its cash, cash equivalents and other liquid assets and this process is called netting. Net creditor is a country creditor nation, one must account for the nation’s overall debt balance when calculating the balance of payment.

3) A nation’s current account balance and its capital flows are identically equal with from each other which is the current account is running deficit when net capital inflows from abroad while the current account is surplus when net capital outflows.

1121118233

2016-07-22 01:53:54 UTC

e balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. If a country has received money, this is known as a credit, and if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming.

R

2016-07-22 01:57:01 UTC

1121118232

2016-07-22 01:58:21 UTC

Siti Masturah bt Ab Wahab

2016-07-22 09:17:56 UTC

1141327505

1. The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. If a country has received money, this is known as a credit, and if a country has paid or given money, the transaction is counted as a debit.

2. A debtor is a person or enterprise that owes money to another party. (The party to whom the money is owed is often a supplier or bank that will be referred to as the creditor.)A creditor is a person, bank, or other enterprise that has lent money or extended credit to another party. (The party to whom the credit has been granted is often a customer that will now be referred to as a debtor.)

3. The current account records exports and imports of goods and services as well as unilateral transfers whereas the capital account records transactions of purchase and sale of foreign assets and liabilities during a particular year. The current account considers goods and services currently being produced. The credit and debit of foreign exchange due to these transactions are also recorded in the balance of current account. The capital account is concerned with payments of debts and claims, regardless of the time period. The balance of capital account includes all items reflecting changes in stocks.

1122702257 Goh Jing Yi

jingyigoh_0908 — 2016-07-22 16:35:21 UTC

1.The balance of payments, also known as balance of international payments of a country. It record of all economic transactions between the residents of the country and the rest of the world in a particular period of these government bodies. Thus the balance of payments includes all external visible and non-visible transactions of a country . It represents a summation of country's current demand and supply of the claims on foreign currencies and of foreign claims on its currency.

2.A nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide.

3.A nation's current account balance and its capital flow are identically equal with each other. If a nation is experiencing net capital outflows, then it must be running a current account surplus. While, if a nation is experiencing net capital inflows from abroad, it must also be running a current account deficit.

1132702633 RUBYTHIRA ARUMUGAM

2016-07-23 14:37:44 UTC

1) It's the record of all transactions between the citizens in a country to whole wide world. It is also made between individuals, firms and government bodies.

2) The Net debtor country is a country with a cumulative balance of payment deficit. A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide. A net creditor nation is a country that has a cumulative balance of payment surplus. A net creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world.

3) The current account balance and net capital flows must be identically equals.

Domestic Saving – Domestic Investment = Current Account Balance

Domestic Saving – Domestic Investment =
Net Capital Flow

1132701657

jwkoay16 — 2016-08-01 15:24:18 UTC

Question 1
Balance of statements is a statement that summarizes an economy’s transaction with the rest of the world for a specified time period. The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts.

Question 2
A net debtor is a nation has negative net investment after recording all of the financial transactions it has completed worldwide. A net creditor is a nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world.

Question 3
The current account deals with short-term transactions known as actual transactions, as they have a real impact on income, output and employment levels of a country through the movement of goods and services in the economy. The capital account is a record of the inflows and outflows of capital that directly affect a country’s foreign assets and liabilities. It is concerned with all international trade transaction between citizens of a given country and citizens in other countries. The sum of the current account and capital account as reflected in the balance of payments will always be zero; any surplus or deficit in the current account is matched and cancelled out by an equal surplus or deficit in the capital account.

Goh Hai Ching (113270183

2016-08-04 06:43:10 UTC

1.) A statement that summarizes an economy’s transactions with the rest of the world for a specified time period. The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts – the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while the capital account mainly includes transactions in financial instruments. An economy’s balance of payments transactions and international investment position (IIP) together constitute its set of international accounts.

2.) A nation with a cumulative balance of payment surplus. A creditor nation has positive net investment after recording all of the financial transactions completed between it and the rest of the world
A nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transactions it has completed worldwide.

3.) The current account and capital account comprise the two elements of the balance of payments in international trade. Whenever an economic actor (individual, business or government) in one country trades with an economic actor in a different country, the transaction is recorded in the balance of payments. The current account tracks actual transactions, such as import and export goods. The capital account tracks the net balance of international investments – in other words, it keeps track of the flow of money between a nation and its foreign partners

Nur Fathiah Amirah (1132701629)

2016-08-08 07:54:10 UTC

Q1) - System of accounts that measures transactions of goods, services, income, and financial assets between domestic residents, businesses, and governments and the rest of the world during specific time period.
- Similar to GDP (accounts for flows of income and expenditures) but also includes the flow of financial assets.
-The balance of payments (BOP) records all financial transactions made between consumers, businesses and the government in one country with others

Q2) -NET CREDITOR (A nation whose total claims on foreigners exceed the total claims of foreigners on the nation.)

-NET DEBTOR(A nation whose total claims on foreigners are less than the total claims of foreigners on the nation.)

Q3) -The current account balance is equal to the difference between domestic saving and domestic investment:

1.Domestic Saving – Domestic Investment ≡ Current Account Balance

2.Domestic Saving – Domestic Investment ≡ Net Capital Flows

-The current account deficit occurs when a nation is a net recipient of foreign capital from abroad.
-The current account balance and net capital flows must identically equal each other:

1.Current Account Balance = Net Capital Flows

1141327063

2016-08-08 08:39:38 UTC

Question 1
A statement that summarizes an economy’s transactions with the rest of the world for a specified time period. The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts – the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while the capital account mainly includes transactions in financial instruments. An economy’s balance of payments transactions and international investment position (IIP) together constitute its set of international accounts.

Question 2
Net creditor is a nation whose total claims on foreigners exceed the total claims of foreigners on the nation. Whereas, net debtor is refer to as a nation whose total claims on foreigners are less than the total claims of foreigners on the nation.

Question 3
1)National income accounting shows that the current account balance is related to domestic saving and investment spending in the following way:
Current account balance = domestic saving – domestic investment
2) The national income accounts also reveal that a country’s overseas investment is related to domestic saving and investment spending as follows:
net foreign asset purchases = domestic saving – domestic investment

1141125264

2016-08-25 13:55:20 UTC

1141125264

2016-08-25 13:55:38 UTC

1132702452

cnyee — 2017-01-17 04:27:19 UTC

1) Balance of payments is a system of accounts that measure transaction of goods. services. income, and financial assets between domestic residents, businesses, and government and the rest of the world during specific time period.

2) Net Debtor - A nation whose total claims on foreigners are less than the total claims of foreigner on the nation

1132702452

cnyee — 2017-01-17 04:28:54 UTC

1) The FOREX is a global decentralized market for trading of currencies. This includes all aspects of buying , selling and exchanging currencies at current determined prices in terms of volume of trading, it is by far the largest market in the world.

2) Foreign exchange arbitrage is a risk free trading strategy that allows retails forex traders to make profit with no open currency exposure. Involves the simultaneous buying and selling of different currency.

RUEBESHINII A/P PARANINATHAN1132700802

cnyee — 2017-01-17 04:29:50 UTC

1) Foreign exchange market is a system of private banks, foreign exchange dealers and brokers, and central banks through which households, firms and governments exchange one nation’s currency for the currency of another nation.

2) Foreign exchange arbitrage is the simultaneous buying and selling to profit as opposed to speculation. The ability of market participants to arbitrage guarantees that cross rate will be, in general, consistent. If not, the action of currency traders will brings the currencies in line.

RUEBESHINII A/P PARANINATHAN1132700802

cnyee — 2017-01-17 04:29:55 UTC

1) The balance of payments (BOP) is the method where countries used this record to monitor all international monetary transactions at a specific period of time and calculated every quarter and every calendar year. BOP encompasses all transactions between a country’s residents and its non-residents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts.

2) A country with by government borrow money from international financial institutions such as the World Bank, foreign governments, or to foreign lenders. The country will have a negative balance of trade, resulting from amount of money coming into the country from outside sources is greater than the amount of exports and money that the country sends out.
Net creditor country has a cumulative balance of payment surplus. The country has positive net investment after recording all of the financial transactions completed between it and the rest of the world.

MOHD SHAH RAFIQUE BIN ROSLI 1131119844

cnyee — 2017-01-17 04:32:02 UTC

1) Foreign exchange market is a system of private banks, foreign exchange dealers and brokers and central banks through which households, firms and governments exchange one nations currency for the currency at another nation.

2) Forex arbitrage is a risk-free trading strategy that allows retail forex traders to make profit with no open currency exposure. Involves the simultaneous buying and selling of different currency and the difference is the profit.

MOHD SHAH RAFIQUE 11311198441) A system of accounts that records the transactions of goods, services, income and financial assets between domestic residents, businesses, and governments and also the rest of the world during the specific time period. Balance of payments also measures the income and transfers of gifts with abroad.2) Net debtor is a nation whose total claims on foreigners exceed the total claims of foreigners on the nation. Whereby, net creditor is a nation whose total claims on foreigners are less than the total claims of foreigners on the nation.

cnyee — 2017-01-17 04:32:06 UTC