Country and currency risk affects each other and share the same risk.

In the balance of payments, the difference between current account flows and capital account flows is shown as statistical discrepancy.

The balance of payments' financial account summarises foreign trade in goods and services plus investment income and gifts or grants made to other countries.

A strong dollar would make imports cheaper, and force domestic producers of goods with import substitutes to lower prices.

Eurobonds are bearer bonds and do not have to be registered which makes them more marketable.

The current account in the balance of payments summarises foreign trade in goods and services plus investment income.

Governments encourage long-term foreign investment in their countries because it helps their balance of payments.

A Canadian dollar cost $0.84 in U.S. dollars and later costs $0.86. The U.S. dollar has depreciated relative to the Canadian dollar.

According to the purchasing power parity exchange rates will tend to move to levels at which the cost of goods in any country is the same in the same currency.

A country with high inflation will tend to have higher nominal interest rates, often coupled with lower real interest rates and a deteriorating balance of merchandise trade.

A "flight of capital" from a country would tend to reduce the value of the country's currency relative to other countries.

A forward market is a market where two parties agreed to exchange currencies in the future.

If a country's inflation rate increases relative to its trading partners, then the country's Current Account balance is likely to decrease.

A deficit in the trade balance of payments puts downward pressure on the exchange rate.

A letter of credit is some form of financial guarantee by a bank to an importer.