Answer / Ashish Bansal

The balance of payments (BOP) is a summary of all transactions between residents and non-residents of a country over a certain period, typically a year. It can be categorized into current account (including trade in goods, services, income, and current transfers), capital account (foreign investments, foreign borrowing, and reinvestment of earnings), and financial account (investments made by residents in the rest of the world and vice versa).

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