Current account example sentences

The current account balance is the sum of the balance of merchandise trade, services and net transfers received from the rest of the world.Cheques drawn on savings or current accounts, however, can be refused by anyone as a mode of payment.The essence of international payments is that just like an individual who spends more than her income must finance the difference by selling assets or by borrowing, a country that has a deficit in its current account (spending more abroad than it receives from sales to the rest of the world) must finance it by selling assets or by borrowing abroad.A country is said to be in balance of payments equilibrium when the sum of its current account and its non-reserve capital account equals zero, so that the current account balance is financed entirely by international lending without reserve movements.Provision is made for a known liability or expense pertaining to current accounting period, the amount of which is not certain.Adding trade in services and net transfers to the trade balance, we get the current account balance.While the former records both capital and revenue receipts and payments relating to any accounting year, the latter records only revenue items relating to the current accounting year.Bank, do not allow any interest on the balance in current account but charge a small amount, called incidental charges, for the services rendered.Apart from currency notes and coins, the balance in savings, or current account deposits, held by the public in commercial banks is also considered money since cheques drawn on these accounts are used to settle transactions.There are certain expenses/losses which are related to the current accounting period but amount of which is not known with certainty because they are not yet incurred.A businessman generally opens a current account with a bank.There are two main accounts in the BoP – the current account and the capital account.Table 1 (given at the end of chapter) shows that there has been a trade deficit throughout the period and a surplus in invisibles except for 1990-9 The current account deficit (which has been observed for 24 years from 1977-78) had started shrinking and turned into surplus from 2001-0 The surplus continued till 2003-04, but turned into a deficit in 2004-0 The large trade deficit could not be bridged by the invisibles surplus.While the former records both capital and revenue receipts and payments relating to any accounting year, the latter records only revenue items relating to the current accounting year.An illustrative bank passbook of a current account is shown in figureure The amount of balance shown in the passbook or the bank statement must tally with the balance as shown in the cash book.