Important Points for IC 89 - Management Accounting Exam
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The Capital Account: Transactions resulting in changes in foreign assets and liabilities of the country are entered here.
The Reserve Account: In principle there is no difference in Capital Account and this account except "reserve assets" which are included here.
Interntional finance examines and explores the dynamics of the global financial system, balance of payments, international monetary system, exchange rates, Foreign Direct Investment and their contribution in international trade and commerce.
The International Monetary System constitutes an integrated set of money flows on account of foreign trade and inflow of cross border capital and the related financial institutions that administer and do governance on the quantities of money, the means for meeting and supporting currency requirements and the basis of exchange rates among currencies in order to meet the payment obligations of the countries concerned.
The International Financial system covers and includes the complete range of : Interest and return-bearing assets, Bank&Non-bank financial institutions and Financial markets for international trade and exchange of currencies.
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