Balance of payment is defined as ........

Economic Affairs Balance of Payments

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Balance of payment is defined as:

The value of exports minus the value of imports

The difference between the liabilities and assets of a firm

The difference between current expenditure and current revenue in the government budget

Complete record of all economic transactions between the country and rest of the world

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Explanation:

4th option is correct.

The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts – the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while the capital account mainly includes transactions in financial instruments. An economy’s balance of payments transactions and international investment position (IIP) together constitute its set of international accounts.