O'Reilly logo

International Financial Management by Thummuluri Siddaiah

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 3

The Balance of Payments: Implications for Exchange Rates

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

  • Understand the concept of balance of payments (BOP).

  • Discuss the principles of BOP.

  • Understand the components of the current account, capital account, and reserve account.

  • Analyse the association between national income and international economic transactions.

  • Define BOP identity.

  • Analyse the BOP under alternative exchange rate regimes.

  • Discuss the implications of the BOP for money supply.

3.1 Introduction

However developed a country may be, it has to depend on other countries for something or the other, as no country can produce all that is required for its people. The economies of the world are necessarily ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required