Answer to Question #233759 in Macroeconomics for Chiamaka

Question

What is the implications of the capital and with respect to balance of payment between 2000 and 2020

Answer 1

Balance of payment usually summarizes each transaction between entities found in a particular country and the entire world over a specific time, for instance, 2000 to 2020. For this period, the balance of payment reveals the economic and financial status of a given country. The BOP is an indicator used to determine if the value of its currency is depreciating or appreciating. Therefore, the BOP statement is a significant aspect that helps the government decide on trade and fiscal policies.