Economics! help!!!!!!!!!!!!!!!!!!!!?

  • Thread starter Thread starter Priyam B
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Priyam B

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My economics book has a chapter- THE STRUCTURE OF THE BALANCE OF PAYMENTS. In this, it says, that there are 2 sections of the structure of the balance of payments.The first is the current account.
The second section is named CAPITAL AND FINANCIAL ACCOUNTS.
This has 3 parts:-
1.Capital account
2.Financial account
3.Official reserves

Please tell me the meaning of this section and the meaning of and differences between the 3 sub parts. Thank you!!!
the book doesn't explain these 3 it just states it. I have to present this chapter in class, so I need to know what they mean and what is the difference in between them!
 
Balance of Payments or BOP as it is known refers to the amount of exports & imports made by a firm.

Capital account refers to the amount of money or earnings held in a bank by the imports & exports.

Financial account the overall expenses, debit & credit.

Official reserve is the limit of the maximum & minimum levels required for BOP.

Hope I answered your question.
 
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