How many types of BOP are there?

The 3 main types or components of Balance of Payment are financial account, capital account and current account. Financial account deals with investments in real estates, business ventures, Foreign Direct Investments You can read about the Balance of Payment – Description, Components and Formula in the given link.

Current account deals with inflow and outflow of goods and services between countries. Capital account deals with foreign exchange reserves, investments, loans & borrowings.

Further readings:

  1. Balance of Payment Crisis, 1991 – Causes, Measures to Control it
  2. The Reserve Bank of India: Functions, Composition, Monetary Policy Committee

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