the final value of all goods and services that are produced by domestic factors of production in a given time period. • Q=Y+NFP • Net Factor Payments (NFP) is the income paid to domestic factors of production by the rest of the world minus income paid to foreign factors of production by the domestic economy. It includes wages and interest or dividend payments. 3 Expenditure and Production in an Open Economy • Q= Y+NFP = C + I + G +NX+NFP • Current account (CA) measures the size and direction
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MULTIPLE CHOICE QUESTIONS: 1. Forecasts a) become more accurate with longer time horizons b) are rarely perfect c) are more accurate for individual items than for groups of items d) all of the above. 2. A fundamental analysis in exchange rate forecasting involves the following except . a) inflation rates b) interest rates c) money supply d) price trends 3. Which statement is not true about forecasting method? a) There is no single best method of forecasting. b) Technical
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the current account balance of Nigeria‚ the rest of the variables particularly budget deficits stimulates an increase in Nigeria’s current account. The study was conducted using the techniques of co-integration and error correction mechanism. However‚ some policy recommendations have been made believing that government through these recommendations will consider it appropriate for the growth of the Nigeria economy and curtail unnecessary fluctuations in her balance of payments. Keyword: Budget
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Q1: (a) INTERNAL FACTORS AFFECTING BUSINESS ENVIRONMENT: Companies must endure economic recessions‚ competing businesses stealing their market share and dips in their stock price. However‚ these external factors are not the only problems businesses face. Companies must deal with internal factors as well. Internal issues can create just as many problems as external ones. Sometimes‚ the two types of factors are linked. Employees : The caliber‚ attitude and work ethic of a company’s employees are
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The Balance of Payments‚ Exchange Rates‚ and Trade Deficits REVIEW QUESTIONS 1. Do all international financial transactions necessarily involve exchanging one nation’s distinct currency for another? Explain. Could a nation that neither imports goods and services nor exports goods and services still engage in international financial transactions? Answer: The answer is almost certainly a yes. Only in rare cases would you find barter exchanges (goods and services for other goods and services)
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monetary policy statement of February 2013‚ the SBP highlighted two main challenges for monetary policy: to manage the balance of payment position and to contain the possible increase in inflation. Since then‚ SBP’s foreign exchange reserves have declined by another $2 billion; from 8.7 billion at end-January 2013 to $6.7 billion as of 5th April 2013‚ mainly due to debt payments. Contrary to expectations‚ however‚ year-on-year inflation has come down by 1.5 percentage points; from 8.1 percent
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1 – Partnership Ownership Changes & Liquidations - Heading Chapter 14: Partnership Ownership Changes & Liquidations 3 – Partnership Dissolution - #1 • Dissolution is a legal termination • UPA § 31 & 32: – admission or withdrawal of Pr results in Pp dissolution • When act of dissolution occurs‚ Prs may – continue business as new Pp or – liquidate 2 – Partnership Dissolution - Heading Partnership Dissolution 4 – Partnership Dissolution - #2 • Remember dissolution is not
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Problem Set 1 (Chapter 12-13) Instructor: Kanda Naknoi September 14‚ 2005 1. (2 points) Is it possible for a country to have a current account deficit at the same time and has a surplus in its balance of payments? Explain your answer using hypothetical figures. ANSWER: (1 point) Yes. The balance of payments (BoP) is the sum of current account (CA)‚ capital account (KA) and financial account (FA). Theoretically‚ because of the double-entry bookkeeping practice‚ the sum is supposed to be zero. BoP
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the current account‚ balance of trade and balance of payments. Current account is the net profits that a country gain from its export and imports of goods and services‚ earning from foreign investment also the included the profits from transfer of payments. Current account is important because it includes all international merchandise trade and service accounts‚ that is‚ accounts for the value of all merchandise and services imported and exported and all receipts and payments from investments. (Cateora
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18 21 23 24 25 BALANCE OF PAYMENTS The Balance of Payments accounts have been compiled to show the value of all transactions that take place between residents of Sierra Leone and non-residents. The accounts have been compiled and presented to correspond as closely as possible with the recommendations contained in the Fourth edition as well as part of the recommendations of the Fifth edition of the manual on Balance of Payments statistics as prepared by the International
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