Distinguish between trade account and current account of balance of payments account.

(i) The exchange of goods among people, states and countries are referred to as a trade. (ii) Trade between two countries is called international trade. (iii) When the value of expert exceeds...

The difference between autonomous and accommodating transactions is tabulated below : Autonomous Transactions Accommodating Transactions These are transactions which are undertaken for economic motive i.e. profit. These are transactions which are not undertaken for economic motive. These...

(c) Autonomous Payments over Autonomous Receipts

Exports of goods and imports of goods. When the value of exports of goods is greater than the value of import of goods, it is called Surplus Balance of Trade.

Balance of Payments Account shows a record of its sources and uses of foreign exchange. Two part of Balance of Payment Account are: (i) Current Account (ii) Capital Account

The transactions of current account of BOP are: (i) Export and import of goods (ii) Export and import of services (iii) Unilateral transfers.

Balance of trade account includes only visible items of trade. It is defined as the difference between export of goods and import of goods. Balance of trade account = exports...

Current Account- It is the account that records imports and exports of goods, services and unilateral transfers. Components of Current Account: (i) Merchandise account (ii) Invisible items, and (iii) Unilateral...

Autonomous Transactions: These are independent of all other transaction in the BOP. These transactions are not influenced by the foreign exchange position of the country. Exports, imports, etc are some...

(a) (i) Investment from abroad-It is entered to credit side. (ii) Transfer of Funds to relatives abroad: It is entered to debit side. (b) (i) Investment from abroad-Capital Account because...