What is the balance of payment in simple words?

Balance of Payment of a country is the difference between the inflow of money into the country from the rest of the world and outflow of the money from a country to the rest of the world in a particular time period. This monetary transaction takes place by carrying out trade of services and goods by government bodies, private entities and individuals. You can read about the Balance of Payment – Description, Components and Formula in the given link.

Further readings:

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