ECO100Y5 Lecture Notes - Foreign Exchange Market, Reserve Currency, Capital Account
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ECO100Y5 Full Course Notes
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Document Summary
Chapter 35: exchange rates and the balance of payments. Balance of payments accounts: a summery records of a country"s transactions with the rest of the world, including the buying and selling of goods services and assets. There are two main categories to the balance of payments: the current account and the capital account. The current accounts is divided into two main sections: Trade account: in the balance of payments, this account records the value of exports and imports of goods and services. Capital-service account: in the balance of payments this account records they payments and receipts that represent income on assets (such as interest and dividends) Capital account: the part of the balance of payments accounts that records payments and receipts arising from the purchase and sale of assets. The purchase of foreign assets by a canadians is treated just like the purchase of foreign goods.
