Question

What are BOP and its components?

Answer 1

The balance of payments of a nation is the contrast between all cash streaming into the country in a specific timeframe and the outflow of cash to the rest of the world.

The components of the balance of payments are:

• The current account balance.

• The capital account balance.

• The financial account balance.

Also see:

• Balance of Trade Vs Balance of Payment
• Balance of Payment

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