Define balance of payments.

1.	Define balance of payments.
Answer» Balance of payments is a statement of systematic record of all economic transactions between one country and the rest of the world (or foreign countries). Thus the account of receipts and payments of the government of one country from other countries during a period of one year is called Balance of Payments. In the words of Kindleberger, “Balance of payments is a systematic record of all economic transactions between the residents of the reporting country and residents of foreign countries during a given period of time.”

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