Members:
Namrata Sakhare MMS-25
Bhagyashri chaudhari MMS-39
BOP
Current account
Capital account
Std components of BOP
CURRENT ACCOUNT CAPITAL ACCOUNT
(+) Export fob +(-) Direct Investment
(-) Import fob +(-) Portfolio Investment
= Trade Balance +(-) Other Long term Capital
(+) Exports on Non-financial services +(-) Other Short term Capital
(-) Imports on Non-financial services +(-) Net errors and omissions
(+) Investment Income(Credit) +(-) Counterpart items
(-) Investment Income(Debit) +(-) Total change in reserves
+(-) Private unrequited transfers
+(-) Official unrequited transfers
= Current Account balance = Capital Account balance
Current A/cTransactions
Definition:
A commitment by participating countries to fix the
prices of their domestic currencies in terms of a
specified amount of gold. National money and
other forms of money(bank deposits & notes)
were freely converted into gold at the fixed price.
Advantages