What is Balance of Payment? Class 12 Economics Notes

What is the Balance of Payment Class 12 Economics Notes

What is Balance of Payment? Class 12 Economics Notes

The balance of Payment : In this article, we will study Components of BOP and BOP deficit.

Balance Of Payment (BOP) refers to the systematic records of all economic transactions taking place between the residents of one country and resident of foreign countries during a given period of time. The transaction includes the sale of Indian goods and services and purchase of foreign goods. The economic transaction includes the transaction that causes the transfer of value in terms of foreign exchange.

“Balance of payment of a country is a systematic record of all business transactions between the resident of a reporting country and a resident of a foreign country during a given period of time, usually a year”. – Prof C P Kindle Berger

Economic transactions are related to Visible items (products), invisible items (services), capital transfer (capital receipts and payments) and unilateral transactions.

Understand the concept of BOP from Experts, click on macroeconomics class 12 for Class 12 for details.

Learn complete What is Balance of Payment? Class 12 Economics Notes

To continue for the next topic of the same unit click Foreign Exchange

Read another topic- Consumer Equilibrium

Takshila Learning is the top-rated Economic online classes portal where you can get economic classes offline and online. Visit www.takshilalreaning.com

Comments

Lessons-Worksheets-Question Papers-CBSE Class 2 English

Lessons-Worksheets-Question Papers-CBSE Class 2 English CBSE 2nd Class English – One and Many In this blog, we share the spelling rules used in the concept of One and Many. When there is only one of a naming word (noun), it is said to be a singular noun . When a noun shows more than one, it is said to be in the plural . We can add –S, -es, -ves or ies to show that there is more than one noun. For example, we say many birds, four biscuits, six brushes. But for the students of Class 2 , it’s very difficult and confusing to understand where to use s , es, ves or ies in the form of many. Don’t worry, it looks difficult, but it is very easy as in grammar each concept has a set of rules that need to practice. Noun ending with –s, -x, -o, -sh, -ch, and –ss form plurals by taking –es. Look at these pairs of words: Bus – Buses Brush – Brushes Continue ..... Click here ...

Class 3 English Practice Grammar Worksheet -The Adverb

Class 3 English Practice Grammar Worksheet -The Adverb Class 3 English – The Adverb – Kinds of Adverb Fill in the blanks with suitable Adverbs of place. Choose from the box. Up outside everywhere back down away here there ...

PURCHASED GOODWILL METHOD UNDER IND AS 103

The acquisition of subsidiaries results in Goodwill calculation and also records net assets of the subsidiary at fair value on the date of acquisition. Let’s get answers to all the questions related to Goodwill, valuation of NCI, and impairment relating to them. Q1 – What are the ways in which an entity can make payment for purchase consideration? ANS: – Cash – Share exchange – Deferred payment – Contingent consideration Q2 – How is deferred payment dealt, when it forms part of purchase consideration? ANS: The deferred payment is discounted to present value and included in the cost of consideration. At the end of each year, the liability is increased by unwinding the discount, until the payment is settled. For example, An amount of Rs. 108,000 was deferred to be paid after 2 years. The discount rate applicable is 8%. The net present value today of Rs. 108,000 is equal to (108,000 * 1) / (1.08) ^2)= Rs. 92,593 included in purchase consideration. A liability of Rs. 92,59...

Takshila Learning - Online Tutorials

Search This Blog