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    Debits and Credits to the Balance of Payments account

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    Debits and Credits to the Balance of Payments Account. See attached file for full problem description.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:07 pm ad1c9bdddf
    https://brainmass.com/economics/balance-of-payments/debits-and-credits-to-the-balance-of-payments-account-139897

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    The balance of payments is a summary statement of the domestic country's payments and debts to foreign countries and the receipts and credits received from foreign countries for a specified period, generally one year. Balance of Payments = Current Account Balance + Capital Account Balance + Official Reserve Account Balance = 0.

    If the transaction results in a demand for the foreign currency in the foreign exchange market, then the balance of payments entry for the domestic country is a debit (minus) item. If the transaction results in a demand for the domestic currency, it is considered a credit (plus) item. Imports are considered a ...

    Solution Summary

    Balance of Payments debit and credit entries credited by different transactions.

    $2.19