Q.What do you mean by Balance of Payment ?

BoP is a systematic yearly record of all economic transactions between a country's residents and the rest of the world; it covers the current account and the capital account and, in the accounting sense, always balances.

The Balance of Payments summarises every inflow and outflow of value between one country and all others in a year. It is broader than the balance of trade, because it records not only merchandise (visible) trade but also services (invisible) and capital flows.

• Current account: exports and imports of goods (visible trade), services like shipping, banking, insurance and tourism (invisible trade), and unilateral transfers such as gifts and remittances.
• Capital account: international movements of capital — foreign investment, loans, and changes in foreign exchange reserves. …