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Balance of Payments:, , Balance of Payment is an accounting statement that provides a, systematic record of all the economic transactions, between, Residents of a country and the rest of the world, in a given period of, time., , BOP is asummary statement in which all ‘Economic Transactions’, between ‘Residents’ and rest of the world are recorded during a, particular period of time.

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Balance of Payments:, Residents, , e Residents of a country include individuals, firms and government, agencies., , e Residents do not include Diplomatic staff, foreign military personnel,, tourists, migratory workers and branches of foreign companies.

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Balance of Payments:, , , , e Economic transactions refer to those transactions which involve, transfer of the title or ownership of goods, services, money and, assets., , e They are broadly categorised as under:, > Visible Items, > Invisible Items, = — Unilateral Transfers, , > Capital Transfers

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Economic Transactions:, L., , Visible Items: These include all types of physical goods which are, exported and imported. These are called ‘visible items’ as they are, made of some matter or material and can be seen, touched and, measured., , Invisible Items: Invisible items of trade refer to all types of services, like shipping, banking, insurance etc., which are given and received., These are called invisible items as they cannot be seen, felt, touched, or measured.