How are gifts and grants handled in the balance of payments

Reference no: EM13897910

1. How are gifts and grants handled in the balance of payments?

2. What does it mean for a country to experience a capital inflow? Is this associated with a surplus or a deficit on the country's capital account?

3. If you add up all the current accounts of all countries in the world, the sum should be zero. Yet this is not so. Why?

4. What is the investment income account of the balance of payments?

5. What is the official settlements account of the balance of payments? How are official settlements deficits and surpluses associated with movements in the international reserves of the balance of payments?

Reference no: EM13897910

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