BoP-plz explain (1 Viewer)

[rumour]

who regulates the bop????
how does the government no every tranaction?
how does it stay balanced?

when doing problems, how do u calculate da error n omissions, do u take away da current acc from da cap+fin acc or da other way round??

 

[*girl04*]

whats the bop? is it balance of power?

 

[*Pooja*]

reply

i dont think any1 regulates the BOP.
the BOP is stablised? i dont get that, but what i know is that the current account deficit in the current account obviously can be financed by the capital and financial account surplus (ie financial flows coming into Australia).
i dont know about the gov't stuff but it probably refers to the microeconomic policies eg fiscal policy and the macroeconomic policies eg monetary policy that the gov't implements to fix up the CAD problem.

hope this helps.

 

[*girl04*]

lol im really not up ta date with my ecos terms ahs wells nextious year

 

[AGB]

have a read of this thread....it explains a lot about the bop

http://www.boredofstudies.org/community/showthread.php?s=&threadid=19473

 

[Sush]

in finding the net error and omissions do it this way:

you'll hav d current account + cap. n fin. account + net errors n ommisions = 0

basically the net errors n omissions is the bit that fills d gap bcoz dose two accounts will most prob not cancel each other out totally to give zero, so add d two accounts together n dependin on whether its a surplus or deficit, minus or add the difference respectively. so heres an example, based on aus's current figures:

current account was -42.5 billion (dat is a deficit)

cap. n fin. account was 42.9 billion

so if we add dem :

-42.5 + 42.9 = 0.4, not zero so to get rid of dat 0.4 u just minus 0.4 dat bein d net erorrs n omissions

so it would look like dis
CA + C&F.A + NET.ERRORS = 0
(-42.5) + 42.9 + (- 0.4) = 0

hope dat helps!