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When countries trade, financial transactions amongst businesses and/or consumers of different nations occur. The system of accounts that records a nation’s international financial transactions is called its balance of payments.
A statement that summarizes an economy’s transactions with the rest of the world for a specified time period.
The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts
The balance of payment (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country.
Systematic record of all economic transactions between the residents of a foreign country
Balance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world.
When all components of the BOP accounts are included they must sum to zero with no overall surplus or deficit.
Balance of payment is the difference in total value between payments into and out of a country over a period.
The system of accounts that records a nation’s international financial transactions is called its balance of payments"
Balance of payment can be defined as the amount recievable or payable to counter countries against the exports/imports trade done with them.
In case the balance amount is receivable from the counter countries then such situation is called as favourable balance of payment where as in the other case if is know as unfavourable situation.
The BOP directly effects the economy of the country as its directly related to the Inwards/outward flow of the foreign currency from the country.
Actually this term is used in calculation of exprots & imports in any economy of the country . BOT = EXPORTS - IMPORTS
Balance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world"
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