Chapter 5: Balance of Payments Clip 1

An introductory discussion of what is meant by "balance of payments." I touch upon the concept of "receipts" and "payments" from the perspective of the home country (Canada). I look at the three major accounts that make up the balance of payments, namely, current, capital, and official financing accounts. I also mention some of the sub-accounts that make up these major accounts, including: the trade account, capital service account, short and long-term capital, foreign direct investment, and portfolio investment. I conclude by a brief discussion of exchange rate manipulation via the buying and selling of foreign exchange by the central bank (Bank of Canada).

Category:

Education

Tags:

• business
• economics

[Neilio55]

@gr8rishabh I really don't remember verbatim what I said in these videos--I made them a few years ago. So I thought I talked about all the issues you raised.

Which example don't you understand?

[Neilio55]

@gr8rishabh The rest of the videos talk about the current, capital, and official financing accounts. I also talk about the different subdivisions so yes the current account breaks apart into unilateral net transfers, merchandise trade, service trade, capital service accounts etc. I think I also talk about central bank interventions--the buying and selling of foreign exchange reserves to maintain fixed exchange rates.

[gr8rishabh]

actully u didnt not say much in this long video You only said about the rest of the world but you could have told abt the visible invisible and transfer payment also you could have told about the types of accounts prepared like current capital overall bop anyways no offence but i did'nt understand your examples

[Neilio55]

@gr8rishabh What don't I understand?

[gr8rishabh]

Simply bogus

and the teacher here himself does not understand the topic what would he teach us :D