Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: September 30, 20212021-09-30T16:31:27+05:30 2021-09-30T16:31:27+05:30In: Economics What is Balance of Payment? What is Balance of Payment? key economy terms Share Facebook 1 Answer Recent Rahul 0 Questions 518 Answers 176 Best Answers 2k Points View Profile Best Answer Rahul BRIGHT 2021-09-30T16:34:50+05:30Added an answer on September 30, 2021 at 4:34 pm Balance of Payment According to the RBI, balance of payment is a statistical statement that shows. The transaction in goods, services and income between an economy and the rest of the world, Changes of ownership and other changes in that economy’s monetary gold, special drawing rights (SDRs), and financial claims on and liabilities to the rest of the world, and Unrequited transfers. The transactions in BOP are categorised in: Current account showing export and import of visibles (also called merchandise) and invisibles (also called non-merchandise). Invisibles take into account services, transfers and income. Capital account showing a capital expenditure and income for a country. It gives a summary of the net flow of both private and public investment into an economy. External commercial borrowing (ECB), foreign direct investment, foreign portfolio investment, etc form a part of capital account. Errors and omissions: Sometimes the balance of payment does not balance. This imbalance is shown in the BOP as errors and omissions. BOP is compiled using the double entry book keeping system consisting assets and liabilities. 1 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Spot Price? What is Sovereign Risk?