Question

Difference between balance of payment deficit and trade trade deficit

Answer 1

The balance of payments is the record of all international trade and financial transactions made by a country's residents. 

The balance of payments has three components. They are the current account, the financial account, and the capital account. The current account measures international trade, net income on investments, and direct payments. The financial account describes the change in international ownership of assets. The capital account includes any other financial transactions that don't affect the nation's economic output. 

trade deficit
the amount by which the cost of a country's imports exceeds the value of its exports.