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Global Financial Stability - Term Paper Example
Author : americabaumbach
Finance & Accounting
Pages 4 (1004 words)
Name of the student: Balance of payments Introduction In the present world’s economy, the financial system plays a major function of enhancing the financial intermediation process that super sees the flow of funds between savers and borrowers…
Therefore, global financial stability entails smooth operations of the financial institutions and global markets in conjunction with the global economy. Therefore, to determine a global financial stability balance of payments would help in providing information of an interpedently economy. Balance of payments Balance of payments is records of all financial transactions that are made between businesses, the American government and the consumers with people across the rest of the world. The figure in balance of payments explains the amount being spent by the consumers of a particular country and firms on imported goods and services (Choi, 2009). It also entails the degree of success the firms in a particular nation in terms of exports to other countries and markets. This is an essential measure of the United States economic performance worldwide. Karmakar (2010) suggests that a balance of payments gives information about the economic interdependence of a particular economy with foreign countries. It records the value of all transactions among residents and foreign persons for a given duration. ...