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What the balance of payments measures

What the balance of payments measures

Flowchart of balance of payments split into current account, capital account and financial account with credits and debits labelled

The balance of payments is the record of all financial transactions between the residents of one country and the rest of the world over a period of time. A payment received from abroad is a credit, while a payment made abroad is a debit.

4.1.7 Balance of payments Lesson

  1. A Level
  2. /Economics
  3. /4.1.7 Balance of payments