# Balance of Payments

*Macro & Economy — Finicade finance glossary*

The full ledger of a country's transactions with the rest of the world — trade, income and financial flows. By construction it balances: a current-account deficit is financed by a capital-account surplus.

**Related terms:** [Current Account](https://finicade.com/glossary/current-account), [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Comparative Advantage](https://finicade.com/glossary/comparative-advantage)

Source: https://finicade.com/glossary/balance-of-payments