Balance of Payments
The balance of payments, also known as balance of international payments, of a country is the record of all economic transactions between the residents of the country and the rest of the world in a particular period. It is composed of two main components.
1. Current Account
2. Capital Account
The balance of payments includes all external visible and non-visible transactions of a country.
If a country has a deficit on the current account, it needs a surplus on the capital account.