Balance of payments
Difference between the inflow and outflow of money to a country at a given time
Balance of payments
In international economics, the balance of payments (also known as balance of international payments and abbreviated BOP or BoP) of a country is the difference between all money flowing into the country in a particular period of time (e.g., a quarter or a year) and the outflow of money to the rest of the world. These financial transactions are made by individuals, firms and government bodies. BoP compares receipts and payments arising out of trade of goods and services as well as international investment. The balance of payments consists of two primary components: the current account and the capital and financial account. The current account reflects a country's net income, while the financial account reflects the net change in ownership of national assets. The capital account reflects a part that has little effect on the total, and represents the sum of unilateral capital account transfers, and the acquisitions and sales of non-financial and non-produced assets.
Read on Wikipedia · Image Kieran, based on the idea by Peace01234, CC BY-SA 3.0
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