Question

conclusion for economic project class 12 on BOP

Answer 1

atlast we conclude that balance of payment have most important place in our life

Answer 2

"Total of a country's current and capital account is reflected in overall Balance of payments. It includes errors and omissions and official save transactions.

The errors may be because of statistical discrepancies and omission may be because of certain transactions may not be recorded. For e.g.: A remittance by an Indian working abroad to India may not yet recorded, or a payment of profit abroad by a MNC operating in India may not yet recorded or so on. The errors and omissions amount equals to the amount necessary to balance both the sides

Causes of Disequilibrium Natural causes – for example

1. surges, earthquake and so forth

2. Economic causes – for example Cyclical Fluctuations, Inflation, Demonstration Effect and so forth

3. Political causes – for example international relation, political instability, and so forth

4. Social factors – for example change in taste and inclinations and so on."