Balance of payment and balance of trade slideshare
Balance of payments is like the Balance Sheet of a company i.e., the left side of the accounts shows receipts of the country during a particular period and right hand side shows the payments made by the country on various items to other countries for the same period. The balance of payments must always balance. A Balance of Payment Account is a systematic record of all economic transactions between residents of a country and the rest of the world carried out in a specific period of time. Briefly put, ‘Balance of Payment Account is a summary of international transactions of a country for a given period’ (i.e., financial year).