Unit 7

Balance of Payment Chart

	Assets (+) Demand for the $ "Inflows"	Debits/Liabilities (-) Supply of the $ "Outflows"
Current Accounts (CA)
Balance on Goods & Services Net Exports (Xn) Balance of Trade	Exports Tourism here	Imports Tourism there
Net Investment	Interest/dividend payments foreigner paid to the U.S. for use of exported capital.	Interest/dividend payments the U.S. made for use of foreign capital invested in the U.S.
Net Transfers	Aid to the U.S. Transfers back to the U.S. Our royalties	Aid to them Remittances from the U.S. Their royalties
Financial Accounts (K) or (KA) -or- "Financial and Capital Accounts" -or-     "Capital Accounts"	Capital inflows Direct investment in the U.S by  foreigners Purchases of stocks and bonds by foreigners.	Capital outflows Direct investment by the U.S. over there Purchases of stocks and bonds by the U.S.
Official Reserves or Official Settlements or Special Drawing Rights	Currencies IMF holdings Gold	Currencies IMF holdings Gold