I've come full circle - you helped me get my Alevel Economics over 7 years ago, and now i'm back watching for quick recaps to prepare for the CFA. Still as useful as it was 7 years ago - thank you!

You are honestly the best Econ help channel on KZfaq. Amazing of you to make these videos for free and help all of us out! Thank you so much

Balance of payment was a real problem for me and after seeing this video i have a good knowledge of BOP. Thanks a lot... very well explained !!!

POV your watching the entire alevel course in one day before paper 2 tomorrow

I tried to learn this concept through various internet sources many times in the past, but this is the first time I understand how and why the accounts sum to zero. What a simple but amazing teacher! Sir, your voice is also too soothing.....it takes away all the anxiety!

I have a test on Wednesday about this amongst with other chapters... my book confused me SO much but with this video, I feel super prepared for my test now finally understanding the BoP!!!

i just discovered this channel and i have to say that watching econ plus dal is the best investment for my future that i have ever made . its causing me to have a huge knowledge account surplus .

I went back to school to get a MSc. in Management and have this class now and my professor simply blew my mind on this subject. Well this really helped. Your students are very lucky. I finally understand it.

This is the best KZfaq Channel for A level Econ students- I used the videos along with self study and got an A* with the CIE A level Board !Highly recommend it!

IB Paper 2 tomorrow. You're a lifesaver.

I have my econ exam 6 Hours from now. You're a life saver man!!!

you are awesome , i have an exam after two days and I looked at different websites and books but nothing explained those lessons better or clearer than you . Thank you

BY FAR the best video I've seen on the subject. You got a subscriber

Superb explanation. Your energy shows that you are in control of your subject.

Man.. you are a helper.. had no clue .. was stuck.. and I have an exam tomorrow and now I feel ready.. why didn't I discover your channel earlier .😫

You are an absolute champ brother. I have a presentation tomorrow. Thanks for what u are doing, keep it up.

Great video daddy dal

OMDS you are the only person that explains this to me properly, finally understood the BoP!!

We need more people like you. Great video. Thanks!!!!

great video dal , a good way I used to remember the components of the current account was using an acronym of the first letters of the 4 components . So T for trade in goods , T for trade in services , I for investment income and T for transfers . Hope this helped !

Very clear, I would like to use it for my students if I can.

Vikstar is a good economic teacher

You are the best Econ channel, Thank you so much for your help.

I really need to thank you. Your videos are simply amazing. They have helped me understand some important topics of economics. Keep up the good work!

Best video on this topic so far on KZfaq))

Thank You ❤️❤️ got a headache before watching this. You've made it simpler.🙏

In this much detail is A2 right? In As AQA, the bop just includes trade?

Best explanation at all I've ever listened.

Best explanation I've seen so far. Thank you.

Absolutely brilliant sir

Thank you. Very well explained. You are an excellent teacher.

Thank you so much, have a test tomorrow, thought I was screwed, until I clicked this

Cool explanation! Thanks! 👍

Simply explained. Thank you very much!

Thanks Vikk

Hi. Very good video. But I would like to know what constitutes investment income in the current account?

Best explanation.

Perfect explanation, thank you!

this mans saved my a levels

whats the difference between income on the current account and the capital account then? Wouldn't it make more sense to include income on the capital account instead?

Nothing to add, absolutely brilliant!

Hi, I would like to know, if a country like China runs a Current Account surplus, and deceided not to spend its USD and has a positive reserve, then wouldn't the Current account and financial account not balanced out? So all those trade surplus would end up balanced through Errors and Omissions? Thank you in advance.

under what component of the balance of payment do we record loan repayment

A country has BOP position that indicates a huge net surplus of foreign portfolio investments. What policy recommendations would you make?

If you were just a guy looking for a solid intro to economics and its basic ideas etc would this be the right place to start?

Great explanation by the way. Thumb up-ed.

Im 12,thanks for helping me bro ur the reason i have the willpower to study economics everyfay

Very well explained. Thanks alot! Keep up!

What's the "official" definition for BoP? Also, I'm really confused by the 'balancing tool'- surely even if the balancing tool is there, it doesn't just make debts/deficits dissapear? Your videos are really helpful, there is hope for me in this exam afterall! Thank you!

Perfectly explained!!! Thank you

108k views, my g has made it.

Hi Econplus， thanks for the vedio. I have a question, for the portfolio investment of Hong kong balance sheet, if the non-resident invest the stock of H shares, should this amount be put as credit in hong kong's balance sheet? or because the H shares are companies operated in mainland, so hongkong's balance sheet has nothing to do this H shares investment?thanks.

great video really helped, keep up the good work

Hey great video, I have a question if you don't mind If in your example China's FA deficit is a result of high levels of FDI into the USA, will the profits from that FDI be counted as "investment income" on the current account? If so, is this a way of achieving export-based economic growth?

Are you Vikkstars brother??

thursday lets goo

Great video, really cleared everything up

Explained it better than my teacher

Why the balance of payment "has to be balanced"? Why would other countries (China) invest or buy bond of a country (US) with Current Account deficit? I would like to attempt to explain the situation: First of all, it is not like you first have a Current Account deficit, THEN you will have Financial Account surplus. Consider Financial Account being your bank account, and Current Account being your transaction of buying and selling. When you want to purchase more than you sell, but you don't have enough money, so you borrow money from other country (China) by issuing bonds to them. Then you have more cash (Financial Account surplus), to purchase more than you sell (Current Account deficit) = Balance of payment.

vikkstars second channel

gotta love econplusdal

Great video, thanks for all the help!

Yr1 end of year exam tomorrow. Thank you for help.

I think you should clearly explain that according to the theory, the current account should be equal to the financial plus capital account. THis could have been done by putting a plus sign inthe middle

What if the two countries are China and an LDC which does not offer great investment prospects? Then China may invest in another country, so how does it balance out; What's to stop China from investing in a country that already has a FA surplus?

As discussed in the lecture, is Chine going to invest in the countries like the USA where there is a current account deficit? Why a country may invest in a country like the USA?

Excellent summary !

i love you econplusdal

Extremely​ helpful video.

This is amazing!! Thanks a lot!!

can direct investment abroad be registered as a positive number in the financial account? I saw it in one of the real balance of payments sheet, but it does not make sense , because money leaves the country, so does it not have to be a negative number always?

This video is amazing wow

does he have an accent or kind of chew his word? either way it's a great course

very good explanation dude... thanx

Is there a way of actually looking at the account data?

Assume the following represents the sum total of all international transactions for a given year. 1)$100 worth of oil was imported and paid for with a demand deposit. 2)$100 worth of autos were imported and paid for with a demand deposit. 3)$100 worth of wheat was exported and paid for with a demand deposit. 4)$100 in interest payments were made to a foreign bank with a demand deposit. 5)$100 in food aid was given to the rest of the world in the form of a demand deposit. 6)A domestic bank purchased a foreign demand deposit from a foreign bank with a $100 demand deposit. 7)A foreign multinational firm purchased a factory for $100 in the domestic economy for $100 and paid with a demand deposit. 8)$100 worth of long-term Treasury bonds were sold to foreign investors and paid for with a demand deposit. 9)The treasury sold $100 worth of foreign exchange (official reserves) to a foreign central bank for a demand deposit. Which statement is concerning the above transactions is TRUE? The balance on the official settlements account is -$100. The balance on the long-term capital account is -$200.The balance on net foreign transfers is +$100. The balance on the current account is -$300The balance on the merchandise trade account is +$100.

I was speculating. The financial account records the difference in transactions in assets and liabilities between residents and non residents. So if the domestic ownership of foreign assets increase, the overall financial account will increase, because it's an increase in the the domestic nations assets. In the same way, when foreigners decrease their ownership of the domestic nations assets, the financial account will increase, because it's an reduction in the liabilities. In that way the financial account must decrease when the foreign ownership of domestic assets increase, because it's an increase in the domestic liabilities. The domestic nations liabilities, is the foreign nations assets. So if there is a surplus of credit over debit in the current account and the capital account, that is more eksport than import, the financial account must have a balancing net acquisition of financial assets or reduction in liabilities, and that would shown as an positive increase in the financial account. Did he state the same or did I just get confused?

Dal The Man!!!

AHAHHH i LOVE YOUR VIDEO! THANKS!

i can't just figure out one thing. for example if i buy shares of a local company in my country, will the amount i spent for this operation be included in portfolio investments? and with which sign? i need to find a correlation between portfolio investment (in US $) and potential demand for stock broking companies services. in my dissertation i need to claim that countries with positive portfolio investment are better for making brokerage business. is this true? help me please :(

I was sitting at a tutorial last week getting strangely looked at by the class and tutor, because they keep saying the BOP balances, because of a double entry system. That when you record a credit, some debit needs to immediatly balance out the BOP of one individual country. It even says this in the textbook and we get exercises by this which absolutely make zero sense to me. I suspected it balanced out, because countries don't want money flowing out of their country when importing too much and China for instance doesn't want to have too much inflation due to money flowing in. So China invests in the US for this to not happen. So can I get a comfirmation on this, because it is driving me crazy...

Thanks for the video very helpful

Nice video, thank you.

I'm pretty sure land is tangible, unless we're in the Matrix.

You deserve to own a BMW

i thought reserves are reserved money from banks, that do not get transferred, and only stay internal to the bank?

I learn it as the foreign reserve, and the capital account.

Thank you, very helpful!

sir can u explain me inter relationship between current account and capital account and reserve account

What is a statistical discrepancy account?

Thanks a lot, the video was really helpful, can you give me some resources to read for Capital Account

Thanks a lot, I understand the reason why CA and CFA are opposed :D

Is there any way of getting live capital flow data of a country like currency FX??

how central Bank reserve impact on inflow or outflow??? please reply my brother!!

thank you very much, very useful

very clearly explain...

sir i want to know that have you made any video of is lm topic and other topics for economics hns.?

Why couldn't you buy more from the rest of the world forever? I just can't make out how it would be unsustainable, would it affect the money supply? I think i'm missing something, I'd really appreciate it if someone could please clarify.

Thank you dal

Where are loans bought and sold like mortgages?