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Guided by :- Prepared by :-
Prof. Manish Joshi Akhilesh Tiwari
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ëredits (+) ebits (-)
{ Receipts } { Payments }
------------------------------------------------------------------------------------
Current Account
Exports Imports
(a) Goods (a) Goods
(b) Services (b) Services
(c) Transfer Payments (c) Transfer Payments

Capital Account

(a) Borrowings from (a) Lending to

Foreign Countries Foreign Countries

(b) Direct Investments

(b) Direct Investments
in Foreign Countries
by Foreign Countries
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Õfficial Settlements Account

(a) Increase in Foreign (a) Increase In Õfficial
Õfficial Holdings Reserve of Gold and
Foreign Currencies

w
 

p 





u Thereǯs going to be some omissions and

misrecorded transactionsȄso we use a
Dzplugdz figure to get things to balance.
u Exhibit 3.1 shows a discrepancy of $0.73
billion in 2000.
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‰ Meaning

‰ Items

‰ Equilibrium/Disequilibrium

‰ Narrow/Wide

‰ Effect
 
 
 




 



Cash in
Securities out
3
Selling bonds and
stocks

Buying bonds and Cash out

stocks
Securities in
 
 
 

  
  
 



Cash in
Good or
service out 3
Export of a good or
service

Import of a good or Cash out

Good or service
service in
 
 
 


  

Cash in
Good will out
3
Receiving gifts from
abroad

Giving gifts abroad Cash out

Good will in