Monday, May 18, 2015

Balance of Payments

Balance of payments 

Measure of money inflows and outflows between the US and the rest of the world.

Inflows- are credits 
Outflows- are debits 

The balance of payments is divided into 3 accounts .

- capital accounts
- currents accounts
- official reserves 

Double entry booking -
Every transaction in the balance of payments is recorded twice in accordance with standard accounting practice 

Current accounts-

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