Balance of Payments Accounts is a record of all economic transactions between residents of one country and residents of foreign countries during a specific period. It consists of three main components - current account, capital account, and financial account.
Related terms
Current Account Deficit/Surplus: A deficit occurs when a country's imports exceed its exports in value; surplus occurs when exports exceed imports.
Capital Account Transactions: Records financial flows related to non-produced/non-financial assets like land purchases or debt forgiveness.
Financial Account Transactions: Tracks changes in ownership interest involving financial assets such as stocks, bonds, or direct investment abroad.