How Can Capital Inflows Occur as Credits in the BOP

question 87

Essay

How can capital inflows occur as credits in the BOP accounting system?

---

Definitions:

Issuer

An entity that issues or proposes to issue any security, or the entity on whose behalf the securities are issued.

Times-Interest-Earned Ratio

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt.

Debt-to-Equity Ratio

A ratio demonstrating the mix of owner's equity and liabilities in financing the assets of a company.

Quick Ratio

A liquidity measure that evaluates a company's ability to pay off its current liabilities with its most liquid assets, excluding inventories.