Balance of Payments
The Balance of Payments (BOP) is a financial record that tracks a country's economic transactions with the rest of the world over a specific period. It includes the trade balance (exports minus imports), investments, and financial transfers. A surplus occurs when a country exports more than it imports, while a deficit indicates the opposite. The BOP helps economists assess a nation's economic health, currency stability, and financial relations with other countries, providing insights into how money flows in and out of a country.
Additional Insights
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The balance of payments (BOP) is a financial record that tracks a country's economic transactions with the rest of the world over a specific period. It includes trade in goods and services, investment flows, and financial transfers. The BOP has two main accounts: the current account (covering trade and income) and the capital account (covering investments and loans). A surplus indicates more money coming in than going out, while a deficit means the opposite. The BOP helps assess a country's economic health and its relationship with global markets.