Business, Legal & Accounting Glossary
A balance of payment is a systematic, comprehensive and detailed statement on the economic transactions conducted by a country with other countries around the world at a certain period of time.
Balance of payments features the current and capital accounts. Current accounts assess the transactions of goods and services, transfers and investment income. Capital accounts assess the financial flows through bonds, direct investments or equities.
Balance of payments also includes the total receipts from foreign countries. These would include the inflow of gold and capital into the country along with the price of exports. The foreign assets included in the balance of payments are calculated at the exchange rate during the transaction.
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This glossary post was last updated: 1st April, 2020 | 2 Views.