What is the meaning of a balance of payment account deficit?
The balance-of-payments accounts of a country record the payments and receipts of the residents of the country in their transactions with residents of other countries. If all transactions are equal, then payments and receipts are equal.Although the totals of payments and receipts are necessarily equal, there will be inequalities—excesses of payments or receipts, called deficits or surpluses—in particular kinds of transactions. This article gives us a clear understanding of balance of payments deficit and surplus. Here is the link: http://www.econlib.org/library/Enc/Balan… Hope this helps!
