Capital account, Microeconomics

Assignment Help:

Capital Account:

The Capital Account presents transfers of money and other capital items and changes in the country's foreign assets and liabilities resulting from the transactions recorded in the current account. The deficit on the current account and on account of capital transactions can be financed by external assistance (loans and grants) drawing from the International Monetary Fund and allocation of the Special Drawing Rights.  The BOP accounts provide a link between the increase in gross external debt and the portfolio and spending decisions of the economy. Thus, increase in gross external debt =  current account deficit (CAD) 

-  direct and long-term portfolio capital inflows 

+ official reserve increases 

+  other private capital outflows 

The above equation shows that an increase in external debt can have three broad sources: current account deficits not financed by long-term capital inflows, borrowing to finance a reserve build-up or private outflows of capital.


Related Discussions:- Capital account

Bains theory, what is bains theory ? describe with the diagram

what is bains theory ? describe with the diagram

Determine the nominal reservation wage, Mikes' preferences for consumption ...

Mikes' preferences for consumption and leisure may be represented by the Utility function: u(C, L) =  ( C-200)*(L-80) . His marginal utilities of leisure and consumption are (C-200

Effected labor markets, If a minimum wage were imposed below the competitiv...

If a minimum wage were imposed below the competitive equilibrium what would we expect to observe in the effected labor markets?

Rational producer, In the context of managerial economics how do you explai...

In the context of managerial economics how do you explain a rational producer. Illustrate giving example covering different dimention.

Revealed preference theory, discuss the revealed preference theory of consu...

discuss the revealed preference theory of consumer behaviour

ELASTICITY, WHAT ARE THE PRACTICAL IMPORTANCE OF INCOME ELASTICITY OF DEMAN...

WHAT ARE THE PRACTICAL IMPORTANCE OF INCOME ELASTICITY OF DEMAND?

Oligopoly, stackelberg,bertnart,cournet about oligopoly

stackelberg,bertnart,cournet about oligopoly

Work plan and gantt chart, Once the organization has decided to move forwar...

Once the organization has decided to move forward with the development of a new or modified system, it is time to determine what tasks are necessary to move the project from initia

Principles of microeconomics, can you help me figure out how to create a gr...

can you help me figure out how to create a graph with little or no information

Determinants of private demand - gender , Determinants of Private Demand - ...

Determinants of Private Demand - Gender Hypothetically, let us consider a family with two children, a boy and a girl. Let it be that both of them qualify in an entrance exami

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd