Question

Distinguish between the balance of trade and the balance of payments and identify the key accounts within the balance of payments

Short answer

It keeps a list of the state's global money transaction on items, activities, and revenue out over length of every year.

Step-by-step solution

Introduction

The balance of trade, is really a monetary representation that describes what a region exports from the rest of the planet.

The balance of payment, is really a current account that chronicles its all of economy exchanges the with rest of the planet.

Given Information

The BoT encompasses commercial transactions items. BoP includes money with payments, assets, and labor.

Explanation

The balance in between input and output of items is defined as balance of trade (BoT).

The imbalance between entry and exit of exchange rates is termed as balance of payments (BoP).