Explore BrainMass

Components of the Balance-of-Payment

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

A nation's balance-of-payment can be grouped into several categories. List and describe these categories.

© BrainMass Inc. brainmass.com March 22, 2019, 2:37 am ad1c9bdddf

Solution Preview

The balance of payments is a summary statement of a country's payments and debts to foreign countries and the receipts and credits received from foreign countries for a specified period, generally one year. The Balance of Payments (BoP) can be represented with this equation: Current Account Balance + Capital Account Balance + Balancing item = 0.

The BoP is expected to sum to zero as any deficit in one account would be ...

Solution Summary

The categories included within a nation's balance-of-payment, as well as their descriptions.