What is the balance of payment, explain?

Balance of Payment is the accounting of a nations’ monetary transactions with other countries over a particular time period. You can read about the Balance of Payment – Description, Components and Formula in the given link.

In the Balance of Payment Account, if the money flows out of the country, then it will be considered as a debit and if the money flows into the country, then it will be considered as a credit.

Further readings:

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