ECON102 Chapter Notes - Chapter Lecture 20-22: Canadian Dollar, Money Supply, Capital Account

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15 Sep 2018
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ECON102 Full Course Notes
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Chapter 15: international finance: balance of payments. Balance of payments: any country that trades with others has a balance of payments, record that summarizes all international transactions of a country with the rest of the world during a certain period. Components of balance of payments: exports of goods. Current account: is a record of net exports of goods and services and net transfers and net investment income. Capital account: records flow of capital like investments and borrowings: divert investments: making a project. Indirect investment or portfolio investments: investing i the stock market. Ex: did a project in the states, the money is flowing out of canada and this is an outflew, it is recorded in the capital account and recorded in the debit account. In borrowing, you have to pay back and net transfers (grants and aids) do not have to be paid back: capital account is when there is an inflow of money and is recorded in the.

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