Plain-English definitions for the terms you'll encounter on your financial journey.
A comprehensive record of all economic transactions between residents of a country and the rest of the world. It includes the current account and the capital account.
A record of all financial transactions made between consumers, businesses, and the government in one country and the rest of the world.
Balance of Payments is a record of all the money flowing into and out of a country, tracking everything from the value of imported goods to investments made by foreign citizens.
A record of all of a country's international transactions, including trade in goods and services, investment income, and cash transfers. It is one half of the balance of payments.
The difference between the value of a country's exported goods and its imported goods. It is a key component of a country's balance of payments.