Balance of Payments
A system of accounts that measures transaction of goods, services, income, and financial assets between domestic residents, businesses, and governments and the rest of the world during a specific time period.The balance of payments is divided into three main categories: the current account, the capital account and the financial account. Within these three categories are sub-divisions, each of which accounts for a different type of international monetary transaction.
The Balance of Payments (BOP) is divided into three main categories: the current account, the capital account and the financial account.
The current account is used to mark the inflow and outflow of goods and services into a country. Earnings on investments, both public and private, are also put into the current account.
The capital account is where all international capital transfers are recorded. This refers to the acquisition or disposal of non-financial assets and non-produced assets, which are needed for production but have not been produced.
In the financial account, international monetary flows related to investment in business, real estate, bonds and stocks are documented.
The Balance of Payments (BOP) is divided into three main categories: the current account, the capital account and the financial account.
The current account is used to mark the inflow and outflow of goods and services into a country. Earnings on investments, both public and private, are also put into the current account.
The capital account is where all international capital transfers are recorded. This refers to the acquisition or disposal of non-financial assets and non-produced assets, which are needed for production but have not been produced.
In the financial account, international monetary flows related to investment in business, real estate, bonds and stocks are documented.