There are three balance of payments accounts.The sum of the balances on these three accounts will equal

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The three balance of payments accounts are the current account, capital account, and financial account. The current account records the trade in goods and services, the capital account records capital transfers, and the financial account records financial transactions like foreign direct investment and portfolio investment. These three accounts record all international transactions entered into by a country, and by definition, they must balance out to zero. This is because every transaction that records a surplus in one account will create a corresponding deficit in another account. Therefore, the sum of the balances on these three accounts will always equal zero.

There Are Three Balance of Payments Accounts