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Glossary Term: BALANCE OF PAYMENTS

Definition(s) for BALANCE OF PAYMENTS:


1. ) The record or statement of money payments between one country and other countries over a period of time. Balance of payments includes foreign investment, loans, and other cash flows as well as payments of goods and services. It has a significant effect on its currency value in relation to other currencies.

2. ) Record of transactions between U.S. residents and foreign residents during a given time period. Includes transactions in goods, services, income, assets, and liabilities. It is broken down into the current accounts (international), capital accounts (international), and financial accounts (international).

3. ) An accounting statement of the money value of international transactions between one nation and the rest of the world over a specific time period. The statement shows the sum of transactions of individuals, businesses and government agencies located in one nation, against those of all other nations.

4. ) The record of a country's transactions in goods, services, and assets with the rest of the world; also the record of a country's sources (supply) and uses (demand) of foreign exchange.



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