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Understanding Payment Accounts and Theories of Exchange Rates

In this free online course, learn the concepts involved in the understanding of payment accounts and exchange rates.

Publisher: NPTEL
Enhance your payment accounts and theories of exchange rate skills with this free online course. Study the definition of the balance of payment and the impact of technology on international finance. Discuss the concept of income distribution estimates and the proportion of the population that earns various income levels. Boost your international finance abilities by studying this comprehensive course.
Understanding Payment Accounts and Theories of Exchange Rates
  • Duration

    1.5-3 Hours
  • Students

  • Accreditation






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International finance skills and expertise are in great demand in developed and developing countries. This course will offer you a comprehensive introduction to payment accounts and exchange rate theories. You will explore the economic factors that affect a country’s economy, including interest rates, tax rates, law, policies, wages, inflation rate, demand and supply, exchange rates and governmental activities. Discover that the Gross Domestic Product (GDP) is the total market value of all final goods and services currently produced within the domestic territory in a year. It measures the market value of the annual output of goods and services presently produced and counted only once to avoid double counting. The Gross Domestic Product (GDP) will be contrasted and compared to the Gross National Product (GNP). The GNP, which refers to the market value of all final goods and services produced in a year, includes the net factor income from abroad. The course will discuss the Net National Product, which refers to the value of all final goods and services after providing for depreciation.

At first, you will be introduced to the Gross National Income, which refers to the income generated both by the total domestic production and the national income companies' international production activities. It also refers to the value of all the products in the domestic economy plus the net flows of factor income from abroad within one year. Then, you will discuss the concept of the human development index. It ranks countries based on human development and includes indicators such as life expectancy, per capita income and education. Dissect the Gini index, a measure of statistical dispersion intended to represent a nation's residents' income or wealth distribution, the most commonly used measurement of inequality. Gain insight into the fact that labour costs are an essential tool for understanding the relationship between work and the economy. They can indicate the relative cost of doing business in various locations.

Next, you will learn that a deficit in the capital account means that money is flowing out of the country, indicating that the nation is increasing its ownership of foreign assets. The opposite is true in the case of a surplus. Would you like to forecast business cycles and predict future levels of GDP? Gain insight into productivity, measuring the efficiency with which goods and services are produced and become adept at this skill. You will then understand that the International Monetary Fund's reserve position refers to the reserves paid in by the nation upon joining the IMF, which the country can borrow automatically in case of need. The course covers special drawing rights that international reserves created by the International Monetary Fund, allocated to member nations according to their importance in international trade. Finally, you will study technology transfer, unemployment rate, income distribution, and inflation. This course will interest finance students studying business studies and finance, those in international economics or international finance, or those who want to step up their global financial intelligence. Why wait? Start this course today and become an expert in international finance.

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