Balance of Payments

Posted in Finance, Accounting and Economics Terms, Total Reads: 2262

Definition: Balance of Payments

A balance of payments account is one which keeps a record of all monetary transactions between one particular country with the rest of the world.

Mathematically, balance of payments is basically a difference between the dollar equivalent amount s of imports and exports.

Therefore, a negative balance of payment implies that the country is a net importing country with more cash flowing out of the country than what is coming in.

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