Describe the Fundamentals of Balance of Payments Accounting

question 47

Essay

Describe the fundamentals of balance of payments accounting.

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Definitions:

Outward Manifestations

External expressions or actions by a party indicating intent to adhere to the terms of an agreement or contract.

Master Of His Offer

This implies that the individual making an offer has complete control over the terms until it is accepted.

Offeror

The party in a contractual agreement who presents an offer to another party (the offeree) to enter into a contract, which may be accepted or rejected.

Formal Contracts

Legally binding agreements that are required to be in writing, often solemnized by the presence of certain formalities.