Balance of Payments (1 Viewer)

[dolphy-chan]

How do I calculate the BOP? I know the equation but what exactly does capital account and financial account and net errors and omissions refer to?


Kind Regards,

Dolphy

 

[Zak Ambrose]

under a floating exchange rate the CA and the CFA will offset each other. so the balance will be 0.
net errors and omissions accounts for, well "errors and omissions" in the collection of data.


looks like i was beaten to it.
also to calculate the balance [a multiple choice or short answer question] simply add up all the components of the CA. add up all the components of the CFA. and add the two together.