Unformatted text preview: payment, dividends, etc.) • Income payments: compensation paid to foreign residents working in the country plus payments to foreign owners of assets in the country • Unilateral transfers: payments form one country to another that don’t correspond to the purchase of any good, service, or asset • Net unilateral transfers = transfers received – transfers given • Current account balance > 0, surplus; CA < 0, deficit • Capital account balance measures the net flow of assets unilaterally transferred into the country • Financial account: selling of assets from one country to another • Official reserve assets: assets other than domestic money than can be used in making international payments • Official settlements balance—balance of payments—net increase (domestic less foreign) in a country’s official reserve assets...
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This note was uploaded on 05/10/2010 for the course ECO 3203 taught by Professor Yang during the Spring '10 term at University of Central Florida.
- Spring '10