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APA
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Management
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English (U.S.)
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Discuss the importance of the balance of payments as an accounting measure. (Essay Sample)

Instructions:

Discuss the importance of the balance of payments as an accounting measure.
Discuss the current account and its components and the capital and financial accounts and their components.
How important is the U.S. deficit in traded goods in regard to the balance of payments?

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Content:


Discussion
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DISCUSSION
Q.1
Balance of payments is used to evaluate the flow of goods and services in a certain economy for a given period. Alternatively, it is used to indicate the flow of capital in and out of a country. Balance of payments is very important to the investors because it assists them to make informed decisions. Thus the balance of payment is used to scrutinize whether certain resources are worth investing. 

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