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What is Understanding Balance of Payments (BOP) about?
The balance of payments measures all international economic transactions between a country and the rest of the world in a given period, usually one year. It includes exports and imports of goods, services, and financial capital, as well as financial transfers. The balance of payments comprises the current account, capital account, and financial account. The current account covers trade in goods and services and income from investments. The capital account records transfers of capital goods. The financial ac
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