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total debits

Why Do Balance Of Payments Always Balance?

January 24, 2024 by Ahmed Ali

Why Do Balance Of Payments Always Balance? The balance of trade of a country may not balance. … Only if the value of exports is equal to the value of imports, the balance of trade is said to be in equilibrium. But the balance of payments always balances because every transaction must be settled. Hence

Categories Finance and Business Tags balance, balances, payment disequilibrium, payments surplus, total debits

What Is Meant By The Balance Of Payments?

January 24, 2024 by Ahmed Ali

What Is Meant By The Balance Of Payments? The balance of payments (BOP) is an accounting of a country’s international transactions for a particular time period. Any transaction that causes money to flow into a country is a credit to its BOP account, and any transaction that causes money to flow out is a debit.

Categories Finance and Business Tags balance, balances, debits, financial account, total debits

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