Balance of Payments definition
It is a record which summarizes the monetary transfers of foreign currency (FC) into and from the country. These transfers include FC, the sources of which are: imports, exports, investments by foreigners in the USA, investment of US citizens abroad etc. The balance of payments has an additional line called: reserve assets (FC balances of the state).
Aside from presenting the Balance of Payments definition, this section also identified its two (2) components:
Capital and financial account