Question

Define balance of payment and explain its components

Answer 1

➡️➡️➡️The balance of paymentsis the record of all international financial transactions made by a country's residents.... ✔✔A balance of payments deficit means the country imports more goods, services and capital than it exports. It must borrow from other countries to pay for itsimports✡

Answer 2

BOP Components. The balance of payments has threecomponents. They are the financial account, the capital account and the current account.The financial account describes the change in international ownership of assets. The capital account includes any financial transactions that don't affect economic output.