balance of payments
TRANSCRIPT
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BALANCE OF PAYMENT.In INDIA
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Balance of payments can be simply referred to as the money which flows into and out of the economy.
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INDIA CHINA
EXPORTS
IMPORTS
MONEY COMES IN
MONEY GOES OUT
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INFLOW OF MONEY ARE CREDITS
OUTFLOW OF MONEY ARE DEBITS
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BUYING
PRODUCT COMES IN
SELLING
MONEY COMES IN
WE CAN EXPLAIN IT ON PERSONAL TERMS AS -
IF WE BUY SOMETHING THE PRODUCT COMES TO US BUT OUR MONEY GOES OUT THIS IS A DEBIT TO US.
IF WE SELL THE SAME PRODUCT TO SOME OTHER PERSON THE PRODUCT GOES OUT AND MONEY COMES IN THIS IS A CREDIT TO US.
DEBIT
CREDIT
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BALANCE OF PAYMENT
….
THREE MAIN PARTS OF BOP
CURRENT ACCOUNTCAPITAL / FINANCIAL ACCOUNT
OFFICIAL RESERVES
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CURRENT ACCOUNT NET EXPORTS - (OVERALL
EXPORTS OF GOODS AND SERVICES) IT COMPRISES OF 80-90% OF CURRENT ACCOUNT.
NET FOREIGN INCOME – IT INCLUDES ALL THE ASSETS OF THE COUNTRY AS WELL AS FOREIGN INVESTMENT AND EARNINGS FROM THE FOREIGN COMPANIES.
FOREIGN AID – IT INCLUDES THE MONEY WHICH A WORKER SENDS TO THEIR HOMELAND.
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FINANCIAL ACCOUNT
REAL ASSETS - IT INCLUDES ALL THE TANGIBLE ASSETS OF THE COUNTRY
SUCH AS LAND BUILDING MACHINERY FACTORY ETC.
FINAANCIAL ASSETS – IT INCLUDES ASSETS SUCH AS STOCKS ,
BONDS SHARES ETC.
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CURRENT ACCOUNT
FINANCIAL ACCOUNT
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BUYING
PRODUCT COMES IN
CURRENT ACCOUNT INCLUDES OF ALL THOSE ASSETS WHO GO TO WHO BOUGHT THEM OR WHO NEEDE THEM.
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MONEY GOES OUT
ASSET DOES NOT COME IN
FINANCIAL ACCOUNT INCLUDES THE ASSETS WHICH REMAIN ON THE SAME PLACE WHERE THEY WERE BOUGHT.
INDIA
FACTORY BOUGHTIN CHINA
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HOPE YOU GUYS ENJOYED THE SESSION.
THIS WAS AN OVERVIEW OF BALANCE OF PAYMENT IN SHORT.
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THANK YOU FOR YOUR
ATTENTION
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credits
AAKASH SHARMANEHA BAGUL
ROSHAN KADAYATNIKITA YADAV
POONAM YADAVNEELU JAISWALSHIVAM TIWARI
MAGHA DEVENDRA