Answer: The three balance of payment accounts are the current account, the capital account, and the official settlements account. The current account records exports, imports, net interest, and net transfers. The capital account records foreign investment in the United States and U.S. investment abroad. Finally, the official settlements account shows changes in U.S. official reserves, the government holdings of foreign currency. The relationship is that the current account balance plus capital account balance plus official settlements account must sum to zero.
Current account, capital and financial account, official settlements account. Current account: the sum of net export minus imports, net interest income, and net transfer. Capital and financial account: Recods foreign investments in the US and the US investments abroad. Official settlements account: Records changes in the US official reserves. The sum of the balances on the three accounts must be zero.
Answer:
ReplyDeleteThe three balance of payment accounts are the current account, the capital account, and the official settlements account. The current account records exports, imports, net interest, and net transfers. The capital account records foreign investment in the United States and U.S. investment abroad. Finally, the official settlements account shows changes in U.S. official reserves, the government holdings of foreign currency. The relationship is that the current account balance plus capital account balance plus official settlements account must sum to zero.
Current account, capital and financial account, official settlements account.
ReplyDeleteCurrent account: the sum of net export minus imports, net interest income, and net transfer.
Capital and financial account: Recods foreign investments in the US and the US investments abroad.
Official settlements account: Records changes in the US official reserves.
The sum of the balances on the three accounts must be zero.