balance of payments ppt 2007

For the subject of International Finance

NAMES ROLL NOS.

SADANAND ADILKAR 01

NEEL JANI 15

SAMIR KHAN 27

APARNA PANCHAL 40

FARHANAZ SHAIKH 51

MAJID KHAN 75

CLASS :- T.Y.BMSDIVISION :- A

• Monetary Gold :- Its the gold reserves with the Reserve Bank Of India .

• SDR:- It stands for Special Drawings Rights. Contains a basket of 5 currencies or more.

• IMF:-It stands for International Monetary Fund. It refers to the

loans taken from the IMF for various national purposes.

• Amortizations:- Amortizations are payment of an obligation in a series of installments or transfers.

• Transfer Payments :- It is derived from labor i.e wages to employees living in neighboring countries .

• Government not classified elsewhere :- It includes government embassies and offices located in different countries.

• Non Monetary Gold Movements :- Non monetary gold movements is the gold used for selling and buying purposes between the people residing in the country.

• Merchandise – Private and Government Purchase :- Private purchase of merchandise is the purchase of goods for a value which is paid to the manufacturer and allies for the production and distribution purposes.

• Trade Deficit and Trade Surplus :- When the current account balance of balance of payment of a country come into surplus, it is known as trade surplus.

• Direct Investment :- Direct Investment is also known as Foreign Direct Investment. This foreign firm’s investment in India to set up a plant or a joint venture.

• Portfolio Investment :- Foreign Institutional Investments are also known as Portfolio Investment. It is highly volatile money and therefore is also referred to as “HOT MONEY”.

• Official Reserve Transactions :- The central bank transactions in international reserves, assets and gold is known by the term – “ Official Reserve Transactions”.

• Official International Reserves :- Foreign assets held by central banks are called as Official international Reserves.

• Importance of Balance of Payments :-i. Transactions for demand – supply equationii. Confirms economic trendsiii. Monetary policies

• Forecasting Exchange Rates – BOP

Sr. No. Particulars Credit Rs. Debit Rs. Net Rs.

A] Current A/C I) Merchandise

1. Private Purchase1. Government Purchase

II) Non – Monetary Gold Movements III) Invisibles

1. ServicesTransportationTravelInsuranceGovernment not classified elsewhereMiscellaneous2. Non – ServicesInvestment income/expenseTransfer/Unilateral payments

CURRENT A/C BALANCE (I+II+III)B] Capital A/C I) Private Transactions

1. Long – term capital1. Short – term capital

II) Official/ Government Capital1. Loans1. Amortizations1. Others

BALANCE OF CAPITAL A/CBASIC BALANCE

(Capital A/C + Current A/C) III) Reserves

IMFSDRMonetary GoldForex Reserves

STANDARDFORMAT AS PER RBI MANUAL