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  • Meaning: Balance of Payments

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    The document discusses the balance of payments (BOP), which records all monetary transactions between a country and the rest of the world over a period of time. The BOP statement includes transactions by individuals, corporations, and the government. It can help monitor funds flow to develop the economy. The BOP can be balanced, in surplus, or in deficit depending on whether receipts of foreign exchange are equal to, more than, or less than payments of foreign exchange.

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    The document discusses the balance of payments (BOP), which records all monetary transactions between a country and the rest of the world over a period of time. The BOP statement includes transactions by individuals, corporations, and the government. It can help monitor funds flow to develop the economy. The BOP can be balanced, in surplus, or in deficit depending on whether receipts of foreign exchange are equal to, more than, or less than payments of foreign exchange.

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    3 views3 pages

    Meaning: Balance of Payments

    Uploaded by

    gallery78649
    The document discusses the balance of payments (BOP), which records all monetary transactions between a country and the rest of the world over a period of time. The BOP statement includes transactions by individuals, corporations, and the government. It can help monitor funds flow to develop the economy. The BOP can be balanced, in surplus, or in deficit depending on whether receipts of foreign exchange are equal to, more than, or less than payments of foreign exchange.

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    © All Rights Reserved
    Download as ODP, PDF, TXT or read online from Scribd
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    Meaning
    Balance of payment (BOP) is a statement that records all the
    monetary transactions made between residents of a country and the
    rest of the world during any given period. This statement includes
    all the transactions made by/to individuals, corporates and the
    government and helps in monitoring the flow of funds to develop
    the economy
    Formula for balance of payments
    Structure of balance of payments
    • In economic sense, BOP need not be always
    equal. it means, BOP can be :

    •Balanced BOP: BOP is balanced when receipts of foreign


    exchange are equal to payments of foreign exchange

    •Surplus BOP: BOP is in surplus when receipts of foreign


    exchange are more than payments of foreign exchange

    •Deficit BOP: BOP is defict when receipts of foreign exchange are


    less than payments of foreign exchange

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