That’s not really how GDP works at all. Financial transactions (Exchanging money, giving change, buying stocks, buying bonds), transfer payments, and unreported transactions are not counted as part of the GDP calculation.
Yes, but the service must be listed for sale for an express price. Simply exchanging money doesn’t fall into this category, doubley so if you’re not enhancing the money with a business.
If you trade US Dollars for Euros at an airport bank for example, the amount of money that you exchange will not be counted in GDP, as the money cannot be attributed to an express service or product; however, the commission or fee that the bank takes will be counted, because that is an advertised service rendered for a given price.
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That’s not really how GDP works at all. Financial transactions (Exchanging money, giving change, buying stocks, buying bonds), transfer payments, and unreported transactions are not counted as part of the GDP calculation.
GDP counts products produced. Not money spent.
Doesn’t GDP also count services rendered?
Yes, but the service must be listed for sale for an express price. Simply exchanging money doesn’t fall into this category, doubley so if you’re not enhancing the money with a business.
If you trade US Dollars for Euros at an airport bank for example, the amount of money that you exchange will not be counted in GDP, as the money cannot be attributed to an express service or product; however, the commission or fee that the bank takes will be counted, because that is an advertised service rendered for a given price.
Ok, then I have written drivel. Thanks for clearing that up!
No problem! Happy to help! No shame in learning! :)