PPT-THE BALANCE OF PAYMENTS AND THE EXCHANGE RATES

Chapter 37 Lipsey THE BALANCE OF PAYMENTS BOP BALANCE OF PAYMENTS ACCOUNTS Current Account Records transactions arising from trade in goods and services from income accruing to capital or from transfers by residents . There are two “pure” types of exchange-rate systems:. Flexible Exchange Rates - a flexible, or floating-exchange-rate system, through which demand and supply determine exchange rates and in which no government intervention occurs.. In international trade it becomes necessary for individuals in different countries who want to buy and sell from one another to exchange currencies. There are approximately 150 different currencies in circulation in the world today. In the process of trading between nations, foreign exchanges of currency must be made.. 2. Exchange Rate Essentials. Exchange Rates in Practice. The Market for Foreign Exchange. Arbitrage and Spot Exchange . Rates. . Arbitrage . and . Interest Rates. Conclusions. © 2014 Worth Publishers . www.lancaster.ac.uk/postgrad/murphys4/. s.murphy5@lancaster.ac.uk. office . hours: . 3:00PM . to . 4:00PM Mondays LUMS . C85. Question 1 . From . the national income identity, what association might exist between a fiscal deficit and a trade deficit? . and International Investment Position. International Transactions Reporting System Workshop. Amman – Jordan. April 7-9, 2014. Malik Bani Hani. IMF’s . Balance of Payments and International Investment Position Manual (BPM6). (or chapter 3). 2. Talk Agenda. How nations measure int’l economic activity? . Define Current Account, Capital/Financial Account?. How can one use the BOP sub-accounts to make financial decisions?. Balance of Payments. Measure of money inflows and outflows between the United States and the Rest of the World (ROW). Inflows are referred to as CREDITS. Outflows are referred to as DEBITS. The Balance of Payments is divided into 3 accounts. Benjamin Graham. Lecture 12: Money, Exchange Rates, and Interest Rates Benjamin Graham. Housekeeping. New syllabus is posted. 3 Khan academy videos for Friday. Chapter 26. McGraw-Hill/Irwin. Copyright © . 2015 . by . McGraw-Hill Education (Asia). . All rights reserved.. Learning Objectives. Define the nominal exchange rate and discuss the advantages and disadvantages of flexible versus fixed exchange rates. the Foreign Exchange Market. Foreign Exchange Market. Foreign Exchange Market. Foreign Exchange market. :. Market . where different currencies are traded, one for another.. The exchange rate enables people in one country to translate . RATe. An . exchange rate regime, also known as the pegged exchange rate, wherein the government and central bank attempts to keep the value of the currency is fixed against the value of other currencies, is called fixed exchange rate. . Accounting Standard (AS) 11 (Revised 2003). Presented by:. CA Verendra Kalra. ORGANISED . BY. . ON. . AT. . 2. Applicability. Accounting standard (as) 11, the effects of changes in foreign exchange rates (revised 2003), issued by the council of the institute of chartered accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2004 and is mandatory in nature from that date. The revised standard supersedes accounting standard (as) 11, accounting for the effects of changes in foreign exchange rates (1994), except that in respect of accounting for transactions in foreign currencies entered into by the reporting enterprise itself or through its branches before the date this standard comes into effect, as 11 (1994) will continue to be applicable. The balance of payments is a consolidated account of the receipts and pay­ments from and to other countries arising out of all economic transactions during the course of a year.. In the words of C. B. . Of. . Payment. (BOP). Introduction. Balance of payments . (BOP) . accounts . are . an . accounting . record . of all monetary transactions . between a . country . and . the . rest . of the . world. These .