Because the balance of payments is always balanced and the financial account and current account make up a high proportion of the balance of payments The best way to study. Sign up for free. By signing up, you
As a refresher in economics, we must first review balance of payments. Much like your checkbook and bank account balance that you monitor on a daily or weekly basis to see where you stand financially, economic countries do the same thing to judge their financial health. Balance of payments re...
What are the three main parts of a balance sheet? Assets, liabilities, and shareholder's equity. What do assets represent on a balance sheet? Resources owned by the company used to generate future economic benefits. What are examples of assets?
require the borrower to maintain specific ratios such as liquidity and turnover ratios. Both liquidity and turnover ratios are improved by reducing liabilities and assets on the balance sheet. Covenants can also include other conditions, such as dividend payments and the required level of working ...