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Balance of payments

Balance of payments, relation between payments in and out of a country. The figures that make up the balance of payments include trading (imports and exports), invisible earnings (insurance and banking), and capital movements (investment overseas or money from abroad). A country that persistently shows a deficit may have to devalue its currency, borrow money, or adopt strict economies. A country with a large surplus is pressured by inflation.

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21st Century Webster's Family Encyclopedia21st Century Webster's Family Encyclopedia - Augusta to Barlach, Ernst