From a balance of international payments point of view, a surplus on the current account would allow a deficit to be run on the capital account. For example, surplus foreign currency can be used to fund investment in assets located overseas. Also, if a country has a current account deficit ...
this account scans all the incoming and outgoing of goods and services between countries. all the payments made for raw materials and constructed goods are covered under this account. few other deliveries that are included in this category are from tourism, engineering, stocks, business services, ...
Balance of Payments: The balance of payments (BoP) records the undertakings or transactions of commodities, assets and services between citizens of a nation.
Balance of Payments is made up of 3 components. It helps the Government to analyse a particular industry and formulate policies accordingly. For UPSC 2024 prep, visit BYJU'S website