1. balance of payments
    A satement of all transactions between one country and the rest of the world during a given period; a record of flows of goods, services, and investments across borders
  2. Current account
    An account in the BOP statement thatr records the results of transactions involvong merchandise serviced, and unilateral transfers between countires
  3. Financial Account
    An account in the BOP statement that records transactions involving borrowing, lending, and invetsing across borders
  4. double entry bookkeeping
    A method of accounting in which every transaction produces both a debit and a credit of the same account
  5. goods trade account
    an aco=count of the BOP statement that records funds used for merchandies importd snd funds obtained from merchandise exports
  6. Services trade account
    An account of the BOP that records the international exchange of personal or professional services such as financial and banking services, construction, and tourism
  7. Income account
    An Account of the BOP statement that records current income associated with investments that were made in previous periods
  8. Cuurent transfer account
    A Cuurent account on the balance of payments statement that records giftf from the residnets of one country to the residents of another
  9. Direct investment account
    An account in the BOP statement that records investments with an expected maturity of more than one year and an investor's ownership position of at least 10 percent
  10. Portfolio investment account
    An Account in th BOP statement that records investments in assets with an orginal maturity of more than one year and where an investor's ownership position is less than 10 percent
  11. Net errors and omission account
    Makes sure the BOP actually balances
  12. Official reserves account
    • An accountin the BOP statement that shows
    • 1. the change in amount of funds immediately available to a country for making international payments
    • 2. the borrowing and lending that has taken place between the monetary authorities of different countries either directly of through the IMF
  13. Fixed Exchange rate
    the government of a country officially declares that its currency is convertible into a fixed amount of some other currency
  14. Floating exhange rate
    Under this system the government possesses no responsibility to declare that its currenct is convetible intoa fixedamount of some other currency this dimishes the role of official reserves.
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