1. International Liquidity: This is the amount of money available for dealing with international economic transactions.
2. Balance of Trade: It is the relationship between the value of a country’s visible exports and visible imports within a given period of time usually a year.
3. Balance of Trade: Only gives information on visible exports and visible imports.
4. Balance of Payment: Is a record showing a country’s financial position with the rest of the world for a particular period usually a year, i.e. a statement of account showing the relationship between a country’s total payments to other countries and its total receipts from them.
5. The component of balance of payment are:
a. Current account
b. Capital account
c. Monetary movement account
6. Balance of Payment Disequilibrium: Is a condition where the total receipts of a country is greater or smaller than payments to other countries.
7. Balance of Payment Adjustments: These are measures which the government deliberately initiated in order to correct a persistent balance of payments deficit.