Question

What do you understand by balance of payments?

Answer 1

A country’s balance of payments is a systematic record of all economic transactions between its people and residents of other countries over a certain time period, often one year.

Answer 2

Every nation in the globe trades with every other nation in an effort to raise living standards. Each nation's balance of payments accounts contain information on its trade and other economic dealings with other nations worldwide. For instance, India's balance of payments statements quantify its economic exchanges with other nations worldwide. These exchanges include cash inflows and outflows, as well as the sale of Indian goods and services overseas and the buying of goods and services produced abroad by India. A country's balance of payments is a methodical account of all economic exchanges that take place between its citizens and those of other nations within a specific time frame, typically a year.