Loading subject…
Balance of Payments
A statement or record of a country's economic transactions with the all other countries over a specific time period (often a year).
Balance of payments deficit
Occurs on an account when total debits exceed total credits, so the country pays out more on its international transactions than it receives.
Balance of payments surplus
Occurs on an account when total credits exceed total debits, so the country receives more from its international transactions than it pays out.
Credit
In the balance of payments, an entry recording money flowing into the economy from abroad, such as payment for exports or an inflow of foreign investment.
Debit
In the balance of payments, an entry recording money flowing out of the economy to abroad, such as payment for imports or investment sent overseas.