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Bop Macroeconomics Identify And Define Term Paper

It also consists of "the transfer of ownership on fixed assets (assets such as equipment used in the production process to generate income), the transfer of funds received to the sale or acquisition of fixed assets, gift and inheritance taxes, death levies, and, finally, uninsured damage to fixed assets" (Heakal 2009). The final component of the BOP is the financial account, which is comprised of international monetary flows, such as "business, real estate, bonds and stocks" and "government-owned assets such as foreign reserves, gold, special drawing rights (SDRs) held with the International Monetary Fund" (Heakal 2009). Direct foreign investment is included in the financial account, as are private and public assets owned by foreigners, and private assets held abroad (Heakal 2009).

Double-entry bookkeeping is used to compute the BOP. When deploying this method, "the balance-of-payments...

Representatives of these three categories are all found in the current account, the capital account and the financial account. But a greater proportion of examples of these categories may be present to a greater degree in certain components of the BOP than in other categories.
References

Fieleke, Norman. (1996).What is the BOP. Federal Reserve of Boston. Retrieved:

http://www.bos.frb.org/economic/special/balofpay.pdf

Heakal, Reem. (2009). What is the BOP. Investopedia. Retrieved:

http://www.investopedia.com/articles/03/060403.asp#axzz1i1LE6NtO

Sources used in this document:
References

Fieleke, Norman. (1996).What is the BOP. Federal Reserve of Boston. Retrieved:

http://www.bos.frb.org/economic/special/balofpay.pdf

Heakal, Reem. (2009). What is the BOP. Investopedia. Retrieved:

http://www.investopedia.com/articles/03/060403.asp#axzz1i1LE6NtO
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