The balance of payments equilibrium is where the willingness to hold money is equal to the quantity of money supply.

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The balance of payments is a record of all monetary transactions between a country and the rest of the world in a given time period. It includes both current account and capital account transactions. The balance of payments equilibrium occurs when the total outflows of a country's currency are equal to the total inflows of that currency. It is not related to the willingness to hold money or the quantity of money supply.

The Balance of Payments Equilibrium Is Where the Willingness to Hold