Balance of Payments (Current Account, Financial Account and Capital Account)

Balance of Payments (Current Account, Financial Account and Capital Account) - A detailed look at the structure of the balance of payments including the current account, financial account and capital account whilst also considering how the balance of payments must balance
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Theory Video: • Current Account of the...

[@ohmyonedirection]

I've come full circle - you helped me get my Alevel Economics over 7 years ago, and now i'm back watching for quick recaps to prepare for the CFA. Still as useful as it was 7 years ago - thank you!

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Are we all living the exact same lives?

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You are honestly the best Econ help channel on KZbin. Amazing of you to make these videos for free and help all of us out! Thank you so much

[@treasanic6427]

t adawi it was on 69 likes so I didn’t want to like it bcos then it wouldn’t be 69 anymore but I agree

[@YYY24111]

can't agree more!!

[@Kishoreankit]

Balance of payment was a real problem for me and after seeing this video i have a good knowledge of BOP. Thanks a lot... very well explained !!!

[@EconplusDal]

+Ankit Kishore Very happy I could help Ankit, thanks for watching!

[@rkanthilal]

+EconplusDal Very helpful video...thanks. However, I have a similar question to some of the previous posters. I understand that if Country A has a current account deficit and its trading partner takes their surplus and invests in Country A, everything balances out. But, why does this have to happen? What if the surplus country just holds the Country A currency in reserve? How does that balance? Why does the money have to flow back to Country A?

[@yoosif0]

what if country A invest in its own country ? or reduce taxes?

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POV your watching the entire alevel course in one day before paper 2 tomorrow

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How did it go? What grade did you get?

[@SonuKumar-tx9qv]

I tried to learn this concept through various internet sources many times in the past, but this is the first time I understand how and why the accounts sum to zero. What a simple but amazing teacher! Sir, your voice is also too soothing.....it takes away all the anxiety!

[@paulapeters6988]

I have a test on Wednesday about this amongst with other chapters... my book confused me SO much but with this video, I feel super prepared for my test now finally understanding the BoP!!!

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IB Paper 2 tomorrow. You're a lifesaver.

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I went back to school to get a MSc. in Management and have this class now and my professor simply blew my mind on this subject. Well this really helped. Your students are very lucky. I finally understand it.

[@jommydavi2197]

OMDS you are the only person that explains this to me properly, finally understood the BoP!!

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i just discovered this channel and i have to say that watching econ plus dal is the best investment for my future that i have ever made . its causing me to have a huge knowledge account surplus .

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you are awesome , i have an exam after two days and I looked at different websites and books but nothing explained those lessons better or clearer than you . Thank you

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We need more people like you. Great video. Thanks!!!!

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BY FAR the best video I've seen on the subject. You got a subscriber

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Superb explanation. Your energy shows that you are in control of your subject.

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Best explanation I've seen so far. Thank you.

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Nothing to add, absolutely brilliant!

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Best explanation at all I've ever listened.

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[@kuklabota]

Simply explained. Thank you very much!

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Cool explanation! Thanks! 👍

[@petersanayi4071]

Man.. you are a helper.. had no clue .. was stuck.. and I have an exam tomorrow and now I feel ready.. why didn't I discover your channel earlier .😫

[@fjhilam458]

Thank You ❤️❤️ got a headache before watching this. You've made it simpler.🙏

[@TheTomTomfy]

Thank you. Very well explained. You are an excellent teacher.

[@budweiser4]

Perfect explanation, thank you!

[@adilyestay7977]

Best video on this topic so far on KZbin))

[@ruthsilene5025]

Perfectly explained!!! Thank you

[@sunder22bhgwan]

Absolutely brilliant sir

[@UmarDoesEconomics]

great video dal , a good way I used to remember the components of the current account was using an acronym of the first letters of the 4 components . So T for trade in goods , T for trade in services , I for investment income and T for transfers . Hope this helped !

[@MrBigjack11]

Great video, really cleared everything up

[@enienii6241]

Best explanation.

[@BarrettOwenW]

Excellent summary !

[@samuelvrhovec1437]

Extremely​ helpful video.

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[@garrynooker955]

Thank you so much, have a test tomorrow, thought I was screwed, until I clicked this

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Vikstar is a good economic teacher

[@jeromemassiani1427]

Very clear, I would like to use it for my students if I can.

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Great explanation by the way. Thumb up-ed.

[@sarag.regassa7947]

This is amazing!! Thanks a lot!!

[@freddyj3968]

Thank you, very helpful!

[@geckoeldoma590]

Great video, thanks for all the help!

[@peterpetrakas7118]

I agree!

[@rahulmawa5149]

very good explanation dude... thanx

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This video is amazing wow

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great video really helped, keep up the good work

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Nice video, thank you.

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i love you econplusdal

[@xXCPTzSKiLLzXx]

In this much detail is A2 right? In As AQA, the bop just includes trade?

[@YT-ru4mr]

Thanks for the video very helpful

[@leehannah5106]

this mans saved my a levels

[@Tuannguyen-ky4dh]

Hi. Very good video. But I would like to know what constitutes investment income in the current account?

[@Alice-gl6um]

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[@Craftspirationz]

you are the best!!

[@tommylao1027]

thank you very much, very useful

[@davidschiffler6771]

Very well explained. Thanks alot! Keep up!

[@adamwestall806]

Fun yeh ma dude

[@waqarahmed3736]

very clearly explain...

[@C.B21]

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sigma sigma on the wall whos the skibiddiest of them all?

[@davidly9716]

Explained it better than my teacher

[@93MrFerre]

thank you!

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Nice one .

[@Naraluxury]

Thank you.

[@oliverjames1162]

Hey great video, I have a question if you don't mind If in your example China's FA deficit is a result of high levels of FDI into the USA, will the profits from that FDI be counted as "investment income" on the current account? If so, is this a way of achieving export-based economic growth?

[@charalambosmichael4678]

In the USA's BoP Accounts, Chinese-interest company profits must be registered as an outflow in the primary income account, even if no money leaves the USA (e.g. even if all profit is re-invested in the USA)! These foreign owned businesses contribute positively to the Current Account Balance if they are exporting goods and services (since sales=exports > profits, they do incur costs). If, however, these businesses sell to locals rather than abroad, they have a negative impact on the current account via the primary income outflows (the profits that must go to the Chinese-owners). Despite worsening the current account deficit, the truth is that they increase competitiveness in the US and lower prices for US consumers, while also creating jobs for Americans.

[@austinwachira5185]

Dal The Man!!!

[@cam775599]

Thanks a lot, I understand the reason why CA and CFA are opposed :D

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you legend Dal

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108k views, my g has made it.

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You sir are amazing

[@4xnGaming]

thursday lets goo

[@armaankhwaja8507]

any predictions?

[@szymonski1905]

What's the "official" definition for BoP? Also, I'm really confused by the 'balancing tool'- surely even if the balancing tool is there, it doesn't just make debts/deficits dissapear? Your videos are really helpful, there is hope for me in this exam afterall! Thank you!

[@grgn7786]

"The balance of payments is a statistical statement that summarizes transactions between residents and nonresidents during a period". This is the official definition published in the Balance of payments and international investment position manual (6th edition). Not sure if you need this information 5 years later though :)

[@niranx_yt7084]

Thank you dal

[@UzmaKys]

Im 12,thanks for helping me bro ur the reason i have the willpower to study economics everyfay

[@joley6618]

Are you learning this in school or in your free time

[@losteagle6174]

Thanks dear

[@rachittyagiyoutube]

sir i want to know that have you made any video of is lm topic and other topics for economics hns.?

[@jeffho1109]

Hi, I would like to know, if a country like China runs a Current Account surplus, and deceided not to spend its USD and has a positive reserve, then wouldn't the Current account and financial account not balanced out? So all those trade surplus would end up balanced through Errors and Omissions? Thank you in advance.

[@randomuser405]

Thanks..

[@rodbar9267]

whats the difference between income on the current account and the capital account then? Wouldn't it make more sense to include income on the capital account instead?

[@larryenticer2783]

Thanks Vikk

[@sdfsdfsdfsdf9935]

Thanks a lot, the video was really helpful, can you give me some resources to read for Capital Account

[@AjRicho21]

Love u dude

[@upomarahman6654]

Thanks a lot

[@Tuannguyen-ky4dh]

Is there a way of actually looking at the account data?

[@skitz0299]

Yr1 end of year exam tomorrow. Thank you for help.

[@Brandooooo5]

Yr1? School's getting difficult damn!

[@user-tg6wm5hb7d]

A country has BOP position that indicates a huge net surplus of foreign portfolio investments. What policy recommendations would you make?

[@user-nz2qq6vs4f]

can direct investment abroad be registered as a positive number in the financial account? I saw it in one of the real balance of payments sheet, but it does not make sense , because money leaves the country, so does it not have to be a negative number always?

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If you were just a guy looking for a solid intro to economics and its basic ideas etc would this be the right place to start?

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Hero #econplusdalailama

[@aurora00145]

I learn it as the foreign reserve, and the capital account.

[@menzoznem]

I was sitting at a tutorial last week getting strangely looked at by the class and tutor, because they keep saying the BOP balances, because of a double entry system. That when you record a credit, some debit needs to immediatly balance out the BOP of one individual country. It even says this in the textbook and we get exercises by this which absolutely make zero sense to me. I suspected it balanced out, because countries don't want money flowing out of their country when importing too much and China for instance doesn't want to have too much inflation due to money flowing in. So China invests in the US for this to not happen. So can I get a comfirmation on this, because it is driving me crazy...

[@zainamomani7718]

Please do a video about currency derivatives

[@sajjadhosain6548]

how central Bank reserve impact on inflow or outflow??? please reply my brother!!

[@bboycrazyjames]

I think you should clearly explain that according to the theory, the current account should be equal to the financial plus capital account. THis could have been done by putting a plus sign inthe middle

[@goldysaraswat5193]

sir can u explain me inter relationship between current account and capital account and reserve account

[@snhsgr11ll10]

under what component of the balance of payment do we record loan repayment

[@marzzypazzi2187]

Is there any way of getting live capital flow data of a country like currency FX??

[@hannakanjani268]

Hi! how are you? I have a couple of question on Balance of Payments. is it possible if you can help me with that

[@hearyourmood9633]

i can't just figure out one thing. for example if i buy shares of a local company in my country, will the amount i spent for this operation be included in portfolio investments? and with which sign? i need to find a correlation between portfolio investment (in US $) and potential demand for stock broking companies services. in my dissertation i need to claim that countries with positive portfolio investment are better for making brokerage business. is this true? help me please :(

[@weeb.edits.]

thankyou daddy

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