Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
Balance of Payments
|
Tabulation of the market value of goods, services, and financial assets exchanged by residents, firms, and governments of one nation with residents, firms, and governments of other nations
|
|
Double entry bookkeeping:
|
Two sides to every transaction: Purchase/sale, and payment/receipt
|
|
Credit:
|
positive entry reflecting receipt of payment from foreign resident, government, firm, to domestic resident, government or firm.
|
|
Debit:
|
negative entry reflecting payment to foreign resident, government, firm, from domestic resident, government or firm.
|
|
Current account:
|
measures the import and export of goods and services, income, and unilateral transfers between nations
|
|
Goods: (or merchandise trade balance);
|
tangible goods, manufactured items, industrial materials, machinery, clothing, cars, electronic equipment, etc
|
|
Services:
|
financial, business, technical, legal services; tourism, consulting, insurance, banking.
|
|
Income:
|
Wages, interest, dividend receipts (to domestic residents, firms, and governments) and payments (to foreign residents, firms and government).
|
|
Financial account:
|
measures flows of domestic and foreign financial assets (bonds, stock, treasury bills, deposits, currencies, real estate, capital investment), representing claims on ownership or on debt. Includes:
|
|
Private Investment examples
|
Domestic purchases of foreign securities;
foreign purchases of domestic securities, Domestic lending to foreign residents, domestic borrowing from foreign residents, Foreign investment by domestic firms, domestic investment by foreign firms (includes financial investment and direct foreign investment) |
|
Official Settlements Balance:
|
equal to sum of current account and financial account balance (excluding official international reserves), plus statistical discrepancy;
also equals - (change in official reserve balance). |
|
Official International Reserve Balance:
|
measure financial reserve transactions between governments, primarily central banks, finance agencies, national treasuries. Central banks, for example, hold other countries' bonds, and reserves of foreign currencies. These currencies and assets are part of a central bank's reserves.
|