| Net errors and omissions | These show the imbalances brought on by errors in the sources of the data and the compilation of the balance of payments accounts |
|---|---|
| Capital account | A record of the transfers of ownership of fixed assets and of non-financial assets |
| Financial account | A record of how much money is invested abroad by the citizens of a country and how much is brought in |
| Expenditure switching policies | Measures that result in a decrease in imports and a rise in the consumption of items made domestically |
| Expenditure reducing policies | Measures that are employed to decrease consumer purchasing power in order to restore balance of payments equilibrium |
| Both monetary (interest rates) and fiscal (taxes) policies may be involved | |
| Nominal exchange rate | The rate at which one currency is converted into another. Sometimes, it is simply referred to as the foreign exchange rate |
| Real exchange rate | A currency's worth in terms of what it can actually be used to purchase |
| Trade weighted exchange rate | A weighted index that displays the relative importance of trade between a nation and its trading partners |
| Purchasing power parity | A method of displaying the exchange rate that compares the prices of a typical basket of items in two different countries |
In order to facilitate cross-country comparisons, the International Monetary Fund (IMF) has a suggested format for the presenting of a nation's balance of payments accounts.
An organised list of all economic transactions between a certain nation and the rest of the globe is kept in the balance of payments account. There are three parts to the balance of payments accounts: