CA Foundation Exam > CA Foundation Videos > Business Economics for CA Foundation > Balance of Payment
Balance of Payment Video Lecture | Business Economics for CA Foundation
|
124 videos|190 docs|88 tests
|
FAQs on Balance of Payment Video Lecture - Business Economics for CA Foundation
| 1. What is the meaning of Balance of Payment? |  |
Ans. Balance of Payment refers to a record of all economic transactions made between individuals, businesses, and the government of a country with other countries during a specific time period. It includes the trade balance, capital flows, and financial transfers between the domestic economy and the rest of the world.
| 2. What are the components of Balance of Payment? | |
Ans. The components of Balance of Payment include:
a) Current Account: It records the transactions related to trade in goods and services, income from abroad, and unilateral transfers.
b) Capital Account: It records the transactions related to the purchase and sale of non-financial assets.
c) Financial Account: It records the transactions related to the purchase and sale of financial assets, including direct investment, portfolio investment, and reserve assets.
| 3. How does a surplus in the Balance of Payment current account affect the exchange rate? | |
Ans. A surplus in the Balance of Payment current account indicates that a country is exporting more goods and services than it is importing. This leads to an increase in the demand for the country's currency, as foreigners need to buy the currency to pay for the exported goods and services. As a result, the exchange rate of the country's currency appreciates, making imports cheaper and exports relatively more expensive.
| 4. What are the consequences of a deficit in the Balance of Payment current account? | |
Ans. A deficit in the Balance of Payment current account means that a country is importing more goods and services than it is exporting. This leads to an increase in the supply of the country's currency in the foreign exchange market, causing its value to depreciate. Consequently, imports become more expensive, while exports become relatively cheaper, which can help to reduce the current account deficit over time.
| 5. How does the Balance of Payment affect a country's economy? | |
Ans. The Balance of Payment provides valuable information about a country's economic transactions with the rest of the world. It helps policymakers and economists assess the overall health of the economy, identify trends in international trade, and evaluate the sustainability of a country's external position. An imbalance in the Balance of Payment can have various implications for the economy, such as affecting exchange rates, influencing interest rates, impacting employment levels, and affecting the overall economic growth and stability of the country.
Related Exams
About this Video
|
4.69/5 Rating |
|
Dec 20, 2024 Last updated |
Video Description: Balance of Payment for CA Foundation 2024 is part of Business Economics for CA Foundation preparation.
The notes and questions for Balance of Payment have been prepared according to the CA Foundation exam syllabus.
Information about Balance of Payment covers all important topics for CA Foundation 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Balance of Payment.
Introduction of Balance of Payment in English is available as part of our Business Economics for CA Foundation for CA Foundation & Balance of Payment in
Hindi for Business Economics for CA Foundation course. Download more important topics related with notes, lectures and mock test series for
CA Foundation Exam by signing up for free.
Description
Video Lecture & Questions for Balance of Payment Video Lecture | Business Economics for CA Foundation - CA Foundation full syllabus preparation | Free video for CA Foundation exam to prepare for Business Economics for CA Foundation.
Information about Balance of Payment
Here you can find the meaning of Balance of Payment defined & explained in the simplest way possible.
Besides explaining types of Balance of Payment theory, EduRev gives you an ample number of questions to practice Balance of Payment tests,
examples and also practice CA Foundation tests.
|
124 videos|190 docs|88 tests
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Balance of Payment Video Lecture | Business Economics for CA Foundation
,MCQs
,Objective type Questions
,Exam
,Balance of Payment Video Lecture | Business Economics for CA Foundation
,Sample Paper
,study material
,practice quizzes
,shortcuts and tricks
,Balance of Payment Video Lecture | Business Economics for CA Foundation
,Important questions
,Free
,mock tests for examination
,Viva Questions
,past year papers
,ppt
,Extra Questions
,Previous Year Questions with Solutions
,Semester Notes
,video lectures
,Summary
;
Study Balance of Payment on the App
Students of CA Foundation can study Balance of Payment alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Balance of Payment,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Balance of Payment is prepared as per the latest CA Foundation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup